London RationalFX

RationalFX : FED – support for the US economy

RationalFX: Despite leaving interest rates unchanged, the Federal Reserve left the door open last night to providing more support if necessary to the US economy. .

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This meeting followed poor data that came earlier in the day, with gross domestic product falling 4.8% annualised for the January to March period. This is the sharpest contraction in the US economy since the Great Recession, coming shortly after we learnt of the near record low employment figures.

The greenback has also weakened overnight due to the apparent softening of the risk-off approach, with some investors feeling optimistic that we are getting closer to a reopening of global business. This was also fuelled by speculation that an antiviral drug could be mass produced in the near future.

Key Announcements

10:00 – EUR – Consumer Price Index (YoY) (Apr); expected to decrease from 0.7% to 0.1%

10:00 – EUR – Gross Domestic Product (QoQ) (Q1); expected to decrease from 0.1% to -3.5%

10:00 – EUR – Unemployment Rate (Mar); expected to increase from 7.1% to 7.7%

12:45 – EUR – ECB Interest Rate Decision

13:30 – EUR – ECB Monetary Policy Statement and Press Conference

13:30 – USD – Initial Jobless Claims

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