Wall Street on Wednesday will receive two reads on the U.S. economy, with one coming from the Commerce Department and the other from the Federal Reserve, with differing takes on which matters more.
"Don't expect any surprises, the Fed has more than telegraphed that tapering will continue and be finished in the fall," said Jim Dunigan, managing executive, investments, PNC Wealth Management, voicing the consensus view that the Fed would cut its monthly asset buys by another $10 billion to $25 billion at the end of a two-day policy gathering that started Tuesday.
Still, "there may be some indication of how they view the pace of economic growth," Dunigan added. The Fed "could introduce new information tomorrow, as there's a bit of uncertainty as to how they would characterize the economy. They could be more optimistic or less optimistic," said Dan Greenhaus, chief global strategist at BTIG.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.
Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Recommended Content
Editors’ Picks
AUD/USD extends gains due to improved risk appetite
The Australian Dollar maintained its winning streak for the fourth consecutive session on Monday, buoyed by a hawkish sentiment surrounding the Reserve Bank of Australia. This optimism bolsters the strength of the Aussie Dollar, providing support to the AUD/USD pair.
USD/JPY snaps three-day losing streak above 153.50, Yellen counsels caution on currency intervention
The USD/JPY pair snap a three-day losing streak during the Asian trading hours on Monday. The uptick of the pair is bolstered by the modest rebound of the US Dollar and US Treasury Secretary Janet Yellen’s comments on potential Japanese interventions last week.
Gold holds below $2,300, Fedspeak eyed
Gold price loses its recovery momentum around $2,295 on Monday during the early Asian session. Investors will keep an eye on Fedspeaks this week, along with the first reading of the US Michigan Consumer Sentiment Index for May on Friday.
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Bitcoin Cash is the current mania in the Cardano ecosystem following a proposal by the network’s executive inviting the public to vote on X, about a possible integration.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.