{"id":145613,"date":"2019-04-11T12:29:34","date_gmt":"2019-04-11T16:29:34","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=145613"},"modified":"2019-04-11T12:29:34","modified_gmt":"2019-04-11T16:29:34","slug":"fed-keeps-door-open-for-further-rate-hikes","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/04\/fed-keeps-door-open-for-further-rate-hikes\/","title":{"rendered":"Fed Keeps Door Open For Further Rate Hikes"},"content":{"rendered":"
April 11, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Over the European morning on Thursday, the US Dollar traded a little higher, putting an end to the losing streak which has dragged on over the last three days.<\/p>\n

A fairly light docket for the US session today will see focus on the various\u00a0Fed members speaking this afternoon<\/strong><\/b>. The USD Index traded 96.57 last, with price still down from testing the 97 level last week.<\/p>\n

FOMC Minutes Raise Prospect Of Further Rate Hikes<\/strong><\/b><\/h2>\n

The FOMC minutes, released yesterday, confirmed the Fed\u2019s concern for the US economy. They also confirmed the view held by many policymakers,\u00a0that rates could be lifted later in the year if growth picks up again<\/strong><\/b>\u00a0as expected.<\/p>\n

US CPI for March, released yesterday, has also helped USD with prices rising by 0.4% month on month, vs 0.3% marking the\u00a0fastest increase in 14 months<\/a>.<\/p>\n

Brexit Extension Boosting EUR & GBP<\/strong><\/b><\/h2>\n

EURUSD trades higher today as the recovery off the 1.1217 level continues. Yesterday, the ECB lowered its growth and inflation forecasts in light of the ongoing downturn, both domestic and global. However, for now,\u00a0EUR remains buoyant<\/strong><\/b>\u00a0as news of a Brexit extension keeps risk sentiment firm.<\/p>

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In the UK, GBP price action remains stagnant as the Brexit debacle continues. Yesterday, the\u00a0EU agreed to give the UK until October<\/strong><\/b>\u00a0to pass a Brexit deal before leaving the EU. GBPUSD price action reflects the ongoing confusion around Brexit as volatility has totally dried up recently. GBPUSD traded 1.3089 last, just up off the 1.30 base.<\/p>\n

Better Risk Appetite on Brexit News<\/strong><\/b><\/h2>\n

Risk sentiment has been better today as news of the Brexit extension has translated into relief for many investors. The\u00a0SPX500 has turned higher again<\/strong><\/b>\u00a0with price moving back up towards the 2895.33 weekly high. The\u00a0UK100 is higher too<\/strong><\/b>\u00a0as UK investors display better demand in light of the Brexit extension. Price now trades 7435.1 after picking up, just shy of testing the 7369.2 level.<\/p>\n

Safe Havens Down<\/strong><\/b><\/h2>\n

With risk sentiment buoyant today, safe havens have come off a little with both\u00a0gold and the Japanese yen trading lower against the dS Dollar.<\/strong><\/b>\u00a0USDJPY traded 111.11 last as price remains under the 111.76 resistance level. Gold traded 1304.99 last as price turns lower following the five-day winning streak just seen on the rebound of the 1280.58 support level.<\/p>\n

Bearish EIA Report Caps Oil Rally<\/strong><\/b><\/h2>\n

Oil prices are a little lower today following a\u00a0bearish report from the EIA yesterday<\/strong><\/b>\u00a0which showed a further\u00a0build in US crude stocks<\/a>. Along with the weekly report, the EIA also updated its oil outlook for 2019 which now projects a higher\u00a0increase in US oil production<\/strong><\/b>\u00a0than was previously expected. US crude production has risen to fresh record highs recently while OPEC has signaled that it is considering extending the current production cuts when it meets in June, in a bid to keep price supported.<\/p>\n

AUD & CAD Under Pressure<\/strong><\/b><\/h2>\n

Commodity currencies have both been under pressure today as\u00a0weaker oil, and a stronger US dollar\u00a0<\/strong><\/b>haveoutweighed a better risk-on tone in equities markets.<\/strong><\/b>\u00a0AUDUSD is still fighting to break above last week\u2019s .7168 high, trading .7160 last. USDCAD has traded back up to 1.3352, just under the yesterday\u2019s 1.3359 high.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Over the European morning on Thursday, the US Dollar traded a little higher, putting an end to the losing streak which has dragged on over the last three days. A fairly light docket for the US session today will see focus on the various\u00a0Fed members speaking this afternoon. The USD Index traded 96.57 […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-145613","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145613","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=145613"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145613\/revisions"}],"predecessor-version":[{"id":145619,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145613\/revisions\/145619"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=145613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=145613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=145613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}