fedRmeet532121

Optimism overwhelms the dollar

 
     Yesterday’s meeting of the Federal Open Market Committee unexpectedly for the markets led to recovery of the US dollar. At the same time, cannot be said that members of the Federal Reserve System were attuned to the “hawkish”.
 
     On meeting noted a weakening of growth of the US economy in the first quarter, but in Federal Reserve this fact considering like a temporary phenomenon, in the rest the officials were full of optimism. These sentiments among policy-makers allowed the US dollar index get out of the past range, and gain a foothold above 99 basis points.
 
     Today and tomorrow, greenback can continue its strengthening. Unemployment Claims report is expected in the green zone. Tomorrow’s forecast to slight increase of the Unemployment Rate to 4.6% likely will not significant influence to the US currency. The main support for the US dollar can be provided by Non-Farm Employment Change, which  after disappointing past values, are expected to show more impressive data. Besides that, additional support will be from the growth of Average Hourly Earnings, which will give hope for improvement of consumer activity in the future.