Impact of Federal Reserve decision on the markets
The Federal Reserve is expected to maintain interest rates until June, but recent positive data could change that. The US dollar is strong against other currencies.
(AI Video Summary)
The Federal Reserve
The Federal Reserve's upcoming decision on interest rates and how it might affect the markets. We learn that the Chinese central bank has already decided to keep interest rates unchanged. In the UK, there are mixed economic indicators, with low core CPI growth but stronger-than-expected producer price indices (PPI) data.
Micron
Earnings reports from chipmaker Micron are expected, and they project a 45% increase in revenue thanks to artificial intelligence. The analyst is keeping a close eye on market volatility, with a rising support line indicating higher lows. They predict that European equity markets will start slightly stronger. The German DAX is approaching its previous high, but the French CAC 40 might be affected by a profit warning from KERING, which owns Gucci.
Indices
Moving to the Asia Pacific markets, only Singapore's Straits Times is showing meaningful gains, while Chinese markets are down. On Wall Street, JPMorgan reached a new all-time high, and the Dow Industrial, S&P 500, and NASDAQ all experienced gains.
The US dollar
The Federal Reserve is expected to maintain interest rates until June, but recent positive data could change that. The USD is strong against other currencies. The euro's value may drop below a rising support line if the Fed is more hawkish than expected. The Japanese yen is getting weaker against other currencies. Sterling is trading high against the yen, and the euro is at levels not seen in a decade.
Gucci
In terms of corporate news, Prudential is reporting strong numbers, but its stock has seen a significant loss in value. KERING issued a profit warning due to declining sales at Gucci, which might impact the French markets. Micron is expected to report increased earnings due to AI demand. General Mills is also disclosing its earnings today.
Crude oil
Crude Oil prices reached a peak due to falling inventories, while the price of gold is expected to be influenced by the Fed's decision.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
