FOMC minutes: all set for a June hike, no clear signal for H2 2018 - Nomura

Ross J Burland FXStreet

Analysts at Nomura noted that in the May FOMC minutes the Committee indicated that they expect to raise rates again at next month’s meeting.

Key Quotes:

"However, in our opinion, the minutes did not send a clear signal regarding what the Committee expects to do in the second-half of the year."

"The Committee highlighted a number of risks to the outlook. Moreover, they continued to express some uncertainty about the resilience of inflation and inflation expectations."

"It appears that the Committee remains divided on whether one or two additional interest rate increases will be needed in the second-half of this year."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD hits fresh 2026 lows near 1.1570

EUR/USD adds to Monday’s heavy losses and reaches new yearly lows around 1.1570 on Tuesday. The pair’s deep pullback comes as the US Dollar extend its strong bounce, always propped up by the intense flight-to-safety environment amid the deteriorating geopolitical landscape in the Middle East.

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold meets buyers around $5,000, remains under pressure

Gold comes under renewed and marked selling pressure on Tuesday, dangerously approaching the critical $5,000 mark per troy ounce, reversing at the same time four consecutive daily advances. The yellow metal’s bearish tone comes on the back of the increasing demand for the Greenback and investors’ repricing of Fed rate cuts.