Fed Preview: Powell could trigger the end of the dollar panic trade

FXStreet Team FXStreet

The Fed’s view into the next quarter and through the end of the year will be the paramount interest at Wednesday’s FOMC meeting, FXStreet’s analyst Joseph Trevisani reports.

Key quotes

“The Fed will likely use its scheduled April meeting to assess the current and future states of the US economy and to project a message of vigilance, determination and hope to the financial community and the country at large.”

“An optimistic set of projections from the central bank and a hopeful and positive assessment for the US economy from Jerome Powell, especially with a number of states lifting restrictions, will reinforce the equity rally and could begin the end of the dollar panic trade.”

“Expect the Fed to be cautiously upbeat, confident of its policy choices and ready to act if needed.”

Author

FXStreet Team

FXStreet

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.