- April 30, 2018
- Posted by: Joey Benedid
- Category: Market News
USD continues to climb against its peers, reaching highs on the DXY that we haven’t seen since January. The index jumped around 1.37% last week following the rise of US yields, leading to the outlook of a quicker pace for rates hikes from the Fed later this year. On Wednesday, we have the Fed Rate Decision and based on Fed Funds Futures the expectations are that the Fed will hold with only a 6.2% chance of a hike this time around. Commerce Secretary Wilbur Ross said that the US would extend tariff relief to some, but not all countries currently granted temporary amnesty – South Korea being the only nation excluded to the tariffs following a bilateral trade agreement with the US. Sterling continues to slide as Britain’s economy slowed abruptly in Q1, limiting the likelihood of a rate hike next month. Immigration concerns and ongoing Brexit negotiations are also weighing heavy on Prime Minister May’s shoulders.
A busy week on the calendar German CPI and US PCE Core today, with CAN GDP and Manufacturing data and US ISM Manufacturing/Employment numbers coming out tomorrow. All eyes will be on the Fed Rate Decision Wednesday with expectations that they’ll hold rates, investors will be watching for clues for further hikes and sentiment. The week will round out with US non-farm payrolls and unemployment. Short term support and resistance is 1.2800 and 1.2950 respectively with RSI at a neutral 53.