Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Indices

Forecasting the Coming Week: Fedspeak and the BoE meeting come to the fore

Source Fxstreet

Another dreadful week for the Greenback saw the USD Index (DXY) tumble to three-week lows well south of the 105.00 support, mainly in response to the dovish tone at the FOMC event and the softer-than-expected Nonfarm Payrolls in April.

The US Dollar ended the week deeply in red territory, in line with the move lower in US yields across different time frames, although with a potential interest rate cut by the Fed in September as preferred by investors for the time being. Moving forward, the RCM/TIPP Economic Optimism Index is due on May 7 along with Consumer Credit Change. On May 8, come the weekly MBA’s Mortgage Applications and Wholesale Inventories, while Initial Jobless Claims are expected on May 9. Closing the week are the preliminary Michigan Consumer Sentiment and the Monthly Budget Statement.

EUR/USD advanced for its third week in a row, deriving renewed strength from the corrective pullback in the Greenback and the generalized better tone in the risk-associated universe. On May 6, the final HCOB Services PMI in both Germany and the broader euro area will come, ahead of Retail Sales in the bloc on May 7. On May 10, the focus of attention will be on the publication of the ECB’s Accounts.

GBP/USD added to the march north recorded in the previous week, although the move past the 1.2600 hurdle seen at the end of the week lacked follow-through. On May 7, the BRC Retail Sales Monitor will be released ahead of the S&P Global Construction PMI. May 9 will see the BoE meeting, while GDP figures, the Trade Balance, Industrial and Manufacturing Production, and the NIESR Monthly GDP Tracker are all expected at the end of the week.

USD/JPY sharply reversed four consecutive weekly advances and retreated to the sub-152.00 region against the backdrop of suspected FX intervention by the Japanese MoF. The domestic calendar includes weekly Foreign Bond Investment figures on May 6 ahead of the BoJ Summary of Opinions, Foreign Bond Investment, and the flash Coincident Index and Leading Economic Index, all expected on May 9. Finally, Household Spending, Bank Lending and the Eco Watchers Survey are due on May 10.

AUD/USD seems to have followed its own dynamics and clinched its second straight week of gains, coming in just short of the area of three-month tops. The RBA gathering due on May 7 will be the only release of note in Oz next week.

Anticipating Economic Perspectives: Voices on the Horizon

Fed’s Goolsbee, Williams and Cook speak on May 4.
Fed’s Williams and Barkin speaks on May 6 followed by ECB’s Nagel and SNB Jordan.
Fed’s Kashkari and ECB’s Nagel speak on May 7.
Fed’s Cook speaks on May 8.
BoE’s Bailey and Pill are due to speak on May 9.
BoE’s Pill speaks on May 10.

Central Banks: Upcoming Meetings to Shape Monetary Policies

The BoE meets on May 9 and is widely anticipated to leave its policy rate unchanged.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Dollar index tops 100 for the first time since July as the Fed's hawkish dot plot sinks in The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.

Author Irene Q.

Sep 17, Thu

The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.

Gold ends three-week slide at the $4,400 line — eight straight days of ETF inflows vs a 5% 10-year and a 100 dollar Spot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.

Author Suzie

Sep 20, Sun

Spot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.

Dollar holds above 100 near a 3-month high — three Fed speakers and a $69 billion auction land tonight The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

Author Suzie

Yesterday 06: 34

The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changed Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Author Irene Q.

6 hours ago

Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Memory chips surge, Nasdaq notches a second straight record close — why the Dow fell 185 points anyway Micron gained 5%, SanDisk 6.8%, Seagate 4% and Western Digital 3% as the memory complex led the Nasdaq Composite to a second consecutive record close of 27,244.28. But the Dow fell 185 points as JPMorgan, Wells Fargo and Schwab slid more than 3% each — a split tape that says more about positioning than about the economy.

Author Irene Q.

6 hours ago

Micron gained 5%, SanDisk 6.8%, Seagate 4% and Western Digital 3% as the memory complex led the Nasdaq Composite to a second consecutive record close of 27,244.28. But the Dow fell 185 points as JPMorgan, Wells Fargo and Schwab slid more than 3% each — a split tape that says more about positioning than about the economy.

Related Instrument