The US economy is expected to have contracted over the first 3 months of the year. Economists blame the cold weather and the expensive dollar in the growth slowdown. Forecasts differ from 1% growth to zero. In Q4 the economy rose by 2.2%. However, some economists remain optimistic on the United States in the year 2015: in the past year, the first quarter also brought poor results, but growth rebounded quickly later in year.
Anyway, given the lowered growth the FOMC meeting is unlikely to bring any surprises next week. Rate hike expectations slipped to September or even December 2015. What’s more, there is no press conference on the schedule.
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EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
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Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.