EUR/CHF Exchange rate

EUR/USD now accelerates its decline and drops to three-day lows near the 1.1320 zone on Wednesday, always on the back of further improvement in the sentiment surrounding the Greenback despite mixed results from key US fundamentals.

GBP/USD extended its slide on Wednesday, meeting contention near the 1.3300 mark as the Greenback holds firm despite weaker-than-expected first-quarter GDP data and a stronger-than-forecast PCE inflation reading.

Gold remains under pressure on Wednesday, trading around $3,300 as receding US-China trade tensions continues to weigh on safe-haven demand. At the same time, the US Dollar keeps the bid bias intact following stronger-than-expected headline PCE inflation and despite a weaker first-quarter GDP growth print.

Bitcoin is extending its consolidation streak to five consecutive days, trading around $95,000 on Wednesday, as investors await a decisive breakout. A K33 report highlights two key events to watch this week: MicroStrategy’s Q1 earnings release and the approaching deadline for the Strategic Bitcoin Reserve. 

We expect the FOMC will leave its target range for the federal funds rate unchanged at 4.25-4.50% at its upcoming meeting on May 6-7, a view widely shared by financial markets and economists. Market pricing currently implies only a 9% probability of the FOMC cutting the fed funds rate by 25 bps.