Forecasting the Coming Week: Fedspeak and FOMC Minutes should rule the sentiment

Source Fxstreet

The Greenback lost further ground and dropped to multi-week lows on the back of rising expectations of interest rate cuts by the Fed, a view that was further reinforced by lower US CPI data in April

The Greenback remained on the back foot and dragged the USD Index (DXY) to the 104.00 zone amidst an equally downward move in US yields. Weekly Mortgage Applications, Existing Home Sales and FOMC Minutes are all due on May 22. The usual weekly Initial Jobless Claims, the Chicago Fed National Activity Index, New Home Sales and flash Manufacturing and Services PMIs come on May 23, while Durable Goods Orders and the final Michigan Consumer Sentiment are expected on May 24.

EUR/USD maintained its uptrend well in place, advancing for the fifth week in a row and flirting with the key 1.0900 barrier. Germany’s Producer Prices are due on May 20, while EMU Balance of Trade is expected on May 21. On May 23, the advanced Manufacturing and Services PMIs in Germany and the euro bloc and the flash Consumer Confidence gauge in the euro zone will be unveiled. On May 24, the final Q1 GDP Growth Rate in Germany is due.

GBP/USD extended its march north beyond the 1.2700 mark for the first time since mid-March. In the UK docket, the CBI Industrial Trends Orders are due on May 21, seconded by the Inflation Rate and Public Sector Net Borrowing on May 22. May 23 will see the preliminary Manufacturing and Services PMIs, while Retail Sales and the GfK Consumer Confidence are due on May 24.

USD/JPY traded in a choppy fashion, eventually ending the week with marginal losses around 155.50. The Tertiary Industry Index is due on May 20 ahead of the Reuters Tankan Index, Balance of Trade and Machinery Orders all expected on May 22. On May 23, there will be the weekly Foreign Bond Investment and flash Jibun Bank Manufacturing and Services PMIs. The Inflation Rate will close the week on May 24.

AUD/USD resumed the uptrend and closed the week with marked gains, managing to finally surpass the key 0.6700 barrier. On May 21, the Westpac Consumer Confidence Index and the RBA Minutes are due. The flash Judo Bank Manufacturing and Services PMIs are expected on May 23 along with Consumer Inflation Expectations.

Anticipating Economic Perspectives: Voices on the Horizon

  • Fed’s Powell speaks on May 19.
  • Fed’s Bostic, Barr, Waller and Jefferson speak on May 20 along with BoE’s Broadbent.
  • Fed’s Bostic, Barkin, Williams, Waller and Barr speak on May 21. In addition, ECB’s Lagarde, BoE’s Bailey and US Treasury Secretary Yellen are also due to speak.
  • Fed’s Bostic, Collins and Mester speak on May 22 seconded by BoE’s Breeden.
  • Fed’s Bostic and BoE’s Pill are due to speak on May 23.
  • Fed’s Waller and SNB’s Jordan speak on May 24.

Central Banks: Upcoming Meetings to Shape Monetary Policies

  • The PBoC holds its meeting on May 20.
  • The Hungarian central bank (NBH) meets on May 21.
  • The Bank Indonesia (BI) will meet on May 22 along with the RBNZ.
  • The Bank of Korea (BoK) and the CBRT meet on May 23.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Crude Oil Price Forecast: Brent Nears $110 Amid Saudi Pipeline Outage, How Much Further Can Oil Rise?Supply risks in the Middle East continue to heat up, with international oil prices fluctuating at high levels.During Tuesday's Asian trading session, Brent crude futures (UKOIL-F) rose to
Author  TradingKey
14 hours ago
Supply risks in the Middle East continue to heat up, with international oil prices fluctuating at high levels.During Tuesday's Asian trading session, Brent crude futures (UKOIL-F) rose to
placeholder
【Daily Brief】10-year Treasury yield briefly tops 5%, S&P 500 slips to 7,602 and the dollar firms at 99.3 as the Fed's decision eve beginsThe 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
Author  Irene Q.
15 hours ago
The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
placeholder
Gold falls below $4,300 as higher US yields bolster Fed rate hike betsGold price (XAU/USD) tumbles to near $4,295 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising bond yields and surging energy prices strengthen expectations that the US Federal Reserve (Fed) will raise interest rates this week. 
Author  FXStreet
22 hours ago
Gold price (XAU/USD) tumbles to near $4,295 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising bond yields and surging energy prices strengthen expectations that the US Federal Reserve (Fed) will raise interest rates this week. 
placeholder
Silver Price Forecast: XAG/USD falls to near $63.50 amid Fed hike bets, higher oil pricesSilver price (XAG/USD) loses its gains from the previous day, trading around $63.50 per troy ounce during Asian hours on Monday. Non-yielding Silver is currently facing significant headwinds driven by rising Federal Reserve (Fed) rate-hike expectations for the upcoming September decision.
Author  FXStreet
Yesterday 10: 37
Silver price (XAG/USD) loses its gains from the previous day, trading around $63.50 per troy ounce during Asian hours on Monday. Non-yielding Silver is currently facing significant headwinds driven by rising Federal Reserve (Fed) rate-hike expectations for the upcoming September decision.
placeholder
Fed hike odds near 90% into Wednesday's decision — how to trade the dollar, gold and the S&P 500A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
Author  Suzie
Yesterday 07: 49
A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
goTop
quote