US services PMI, US dollar, Federal Reserve – opinions
- US ISM Apr Services PMI 57.1 vs. March 58.3
- Now the markets are becoming the most important place today FOMC political meeting
The April PMI turned out to be slightly lower than expected, at 57.1, which is below the March figure of 58.3 and the consensus score of 58.5. A figure above 50 means that the services sector has grown to 23etc. month in a row, despite being lower than expected. It is noteworthy that the paid metric prices were at an all-time high of 84.6 compared to the March figure of 83.8. This reflects the continuing inflationary pressures that continue to threaten both businesses and consumers, and, more generally, overall economic activity in the United States.
Highlights of the report
- Business Activity Index 59.1
- The index of new orders is 54.6
- The employment index is 49.5
- Prices paid at 84.6
US Economic Calendar
Provided by the DailyFX economic calendar
The US Dollar has cooled its rapid advancement recently EUR / USD widely conducted in the 1.05 area. During March, the dollar rose sharply as the divergence in central bank policy caused price action. As the Fed continues on its way to a “neutral rate,” the European Central Bank and the Bank of Japan have yet to move. It’s a saw euro/USD fall to 1.05, p USD / JPY rapidly soaring to 130. Even with weakness in enaThe Bank of Japan has decided to continue buying bonds, which could worsen the weakness of the yen.
The US Dollar Index (DXY) is a 1-hour chart
Chart created using TradingView
Now all eyes are on the Federal Reserve, where raising rates by 50 basis points is a consensus. Wall Street. The FOMC is also expected to unveil specific balance-sheet reduction plans that will help draw a clearer picture of the Fed’s planned path to normalization. As of this morning, the Fed actually has a price increase of 75 bp. in June and this will be one of the areas to be observed after 2pm today. With a relatively high bar for hawk surprise, a slight relaxation of such aggressive rates can lead to a slight increase in asset risk. To learn more about the scale of this FOMC meeting, Click here.
Fed rate expectations (June meeting)
Provided by CME Group
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