Forex Today: Dollar rises, Gold melts ahead of the all-important Fed decision
Here is what you need to know on Wednesday, April 28:
Markets remain upbeat but higher US yields are keeping the dollar bid as tensions mount ahead of the Fed decision. Chair Powell and his colleagues could hint of tightening amid a strengthening economy. Crude oil inventories, Canadian retail sales, a speech by the ECB's Lagarde,and Wall Street earnings are eyed.
Global stock markets have been edging up gradually with US indexes hovering near record highs amid optimism about a vaccine and stimulus-led recovery. COVID-19 cases have accelerated their downfall as immunization takes a greater effect.
US 10-year Treasuries have risen back to 1.64%, carrying the dollar higher with them. EUR/USD is pressured around 1.2070 and USD/JPY is rising toward 109. Gold has retreated from the highs, changing hands at below $1,770.
The Federal Reserve is set to leave its policies unchanged but may lay down hints that it would begin tapering bond-buying later in the year. The US economy is booming and signs of rising inflation have been popping up. On the other hand, millions of Americans remain out of work.
Federal Reserve Preview: Will Powell power up the dollar? Three things to watch out for
US President Joe Biden is set to deliver a speech to Congress and may offer details about his spend and tax plans. Reports suggest he will omit an expansion of the estate tax. Democrats aim to conclude legislation by early July.
Earnings season is in full gear with Google and Microsoft both beating estimates. Apple and Facebook report their results later in the day.
Brexit: An internal political crisis in Northern Ireland is threatening progress on the NI protocol between the EU and the UK. GBP/USD is trading below 1.39.
AUD/USD is pressured around 0.7750 after Australia's inflation figures missed by 0.6% in the first quarter.
Canada publishes retail sales figures for February, which are forecast to show a pickup in shopping. Crude Oil Inventories are predicted to show a modest draw. WTI is hovering around $63 and USD/CAD is around 1.24.
Cryptocurrencies have been consolidating their gains with Bitcoin trading around $54,000, Ethereum at around $2,600 and XRP at $1.34.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
