English 
Dutch - Nederlands
French - Français
German - Deutsch
Greek - Ελληνικά
Hungarian - Magyar
Italian - Italiano
Polish - Polski
Spanish - Español
Get in touch
- Home
- Getting Started
Get in touch
04/04/2024 - 07:48 UTCThe US dollar continues to trend lower against most major currencies, with the dollar index (USDX) losing another 0.51% of its value. The move comes amidst an unexpected slowdown in the US services sector, upcoming comments from Fed officials and key nonfarm payrolls data that keep investors on edge.
In his speech, Fed chairman Jerome Powell reiterated previous comments that any change in monetary policy will be largely guided by economic data and that most FOMC participants see it as likely to be appropriate to begin lowering the policy rate at some point this year. According to the CME Fedwatch tool, bets for a June rate cut remain stable, right above the 61% level despite key inflation reports showing a slight increase last week.
In Wall Street, sentiment appears improved, as all three main stock indices posted some minor gains, following two consecutive sessions of losses. Part of the move could be attributed to support deriving from Jerome Powell’s comments that rate cuts remain on the table for this year, easing some investor fears that the recent strength of the economy would bring delays to the Fed’s monetary easing schedule.
In corporate news, Intel fell more than 8% after it disclosed $7 billion in operating losses for its foundry business through 2023, as it lost out more business to Asian rivals including TSMC and Samsung Electronics Co Ltd.
For Wednesday, some price action could be observed upon the release of the eurozone PMI readings and the report from last month's European Central Bank meeting. The main focus for the remainder of the week will be on US unemployment data and the long-awaited non-farm payrolls report due on Friday, where forecasts show that 200,000 were added in March. In addition, comments from Fed members Mester and Barkin will most likely be watched closely for new hints as to path the Fed will take with monetary policy.
The EUR/USD pair posted a sharp recovery on Wednesday ending the session 0.65% higher following weaker-than-expected US services sector’s activity, which has eased fears of a hawkish steer by the Federal Reserve.
Data released by ISM Institute revealed that business activity in the services sector slowed down to 51.4 against expectations of a slight acceleration to 52.7. Beyond that, the ISM Non-manufacturing PMI has dropped to 53.4 from 58.6 in February and 64 in January confirming the disinflationary trend in the sector.
Moreover, Atlanta Fed President Bostic and Fed Chair Powell have cooled hopes about imminent rate cuts, yet with no significant impact on the pair.
On the other hand, the Eurozone CPI figures confirmed the soft inflation readings seen in Germany on Tuesday. The Core Inflation has declined below the 3% yearly rate, with the headline CPI easing to 2.4%.
Gold prices raced to a record high yet again on Wednesday, after Federal Reserve Chair Jerome Powell reiterated that recent readings on job gains and higher-than-expected inflation do not materially change the overall picture of economic policy this year.
Powell said that "if the economy evolves broadly as we expect," he and his Fed colleagues largely agree that a lower policy interest rate will be appropriate "at some point this year."
Investors still expect a first rate cut at the Fed's June 11-12 policy meeting; even as stronger recent economic data has sown investor doubts about that outcome.
The U.S. jobs report for March is due to be released on Friday, with new inflation data coming next week.
Oil prices settled slightly higher Wednesday, as market participants weighed a surprise increase in weekly U.S. crude inventories against ongoing geopolitical tensions that threaten to disrupt global supplies.
U.S. oil supplies increased by about 3.2M barrels in the week ended Mar. 29, confounding expectations for a decline about 300,000 barrels.
OPEC+ ministers made no fresh policy recommendations in a meeting earlier Wednesday, as a ministerial committee of the Organization of the Petroleum Exporting Countries and allies, led by Russia, met to review the market and members' implementation of output cuts.
U.S. stocks were mixed after the close on Wednesday, as gains in the Basic Materials, Oil & Gas and Telecoms sectors led shares higher while losses in the Consumer Goods, Utilities and Healthcare sectors led shares lower.
At the close in NYSE, the US 30 lost 0.72%, while the us 500 gained 0.39%, and the us Tech 100 gained 0.65%.
US 500 and US Tech 100 closed higher on Wednesday after data showing the U.S. services industry growth slowed further in March, but the advance was limited after Federal Reserve Chair Jerome Powell indicated a cut in interest was still not in sight.
FOMC members Michelle Bowman and Thomas Barkin are set to speak after the market open on Thursday.
The materials contained on this document should not in any way be construed, either explicitly or implicitly, directly or indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument, in any manner whatsoever. Any indication of past performance or simulated past performance included in this document is not a reliable indicator of future results. For the full disclaimer click here.
By