Fed's Hawkish Tone, Economic Data to Shape Market Outlook This Week

  • 📰 Investingcom
  • ⏱ Reading Time:
  • 59 sec. here
  • 5 min. at publisher
  • 📊 Quality Score:
  • News: 37%
  • Publisher: 53%

EUR/USD News

USD/JPY,Nasdaq 100,S&P 500

Market Overview Analysis by Ipek Ozkardeskaya covering: EUR/USD, USD/JPY, Nasdaq 100, S&P 500. Read Ipek Ozkardeskaya's latest article on Investing.com

We had a roller-coaster month of May in terms of central bank expectations. The month began with the Federal Reserve’s decision to hold the interest rates steady, and Jerome Powell saying that the Fed’s next move will probably NOT be a rate cut. The latter had sent the markets rallying with enthusiasm.

Markets’ bull had an ear on the avalanche of Fed comments without necessarily putting too much focus on them, until last week’s Fed minutes revealed an inconvenient truth: that ‘many’ Fed members questioned whether keeping the rates high for longer is enough restrictive to continue the inflation battle, and if hiking rates wouldn’t be more effective. And the mood finally darkened. This is where we are right now.

In China and nearby, the CSI 300 and HSI index are better bid this Monday morning following a correction last week – which brought sellers back to the market before the HSI index got the opportunity to test the 20K psychological resistance. The Chinese stimulus measures are supportive of gains, but the rising tensions with the West are threatening the Chinese companies’ revenue expectations.

Against sterling, the euro is sitting on a critical support, the 0.85 level. A hotter-than-expected inflation report from the UK brought the Bank of England hawks to the battle field last week, but uncertainties surrounding an upcoming and a too-early general election in the UK will hardly let the pair gain momentum below this level.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 450. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Fed, BoE Signals Challenge Market Optimism as Reflation Trade Loses MomentumMarket Overview Analysis by Ipek Ozkardeskaya covering: EUR/USD, USD/JPY, AUD/USD, Nasdaq 100. Read Ipek Ozkardeskaya's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

Market Mood Brightens as Jobs Report Points to Economic SlowdownMarket Overview Analysis by Ipek Ozkardeskaya covering: EUR/USD, GBP/USD, USD/JPY, AUD/USD. Read Ipek Ozkardeskaya's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »