Done
The US dollar is taking a break in the first part of May, after completing the fourth consecutive month of increase (+1.15% balance sheet) on expectations of an increasingly probable postponement of the rate cut by the Fed until after the summer .
The president of the Minneapolis Federal Reserve, Neel Kashkaribelieves the central bank is likely to keep interest rates at current levels, “for an extended period of time,” at least until officials are confident that inflation is in line with their target.
Speaking at a Milken Institute event, Kashkari said recent inflation data raises questions about whether monetary policy is tight enough to bring price growth back to 2%.
“The most likely scenario is that we stay here for a long period of time”, but if inflation starts to fall instead, “that could lead us to reduce interest rates”.
The path of US interest rates continues to dominate market attention, and with no major macroeconomic data this week, it is inevitable that policymakers’ views will take on greater importance.
The vice president’s speeches are on the agenda Philip Jeffersonof the governor Lisa Cook and the president of the Fed of Boston Susan Collins.
Morgan Stanley it now expects the Fed to begin lowering interest rates starting in September, compared to its previous forecast in July, while still seeing three 25 basis point rate cuts over the course of the year.
The Dollar gained approximately +3% against the Euro during 2024 following different macroeconomic dynamics.
Effect
Technical Analysis. The euro-dollar has been moving sideways for about a year, within the wide 1.05/1.1279 range. In recent weeks he has returned to…
Sign up to Websim to continue reading
Don’t miss this opportunity, sign up to Websim and you will receive a 1 month trial of the Investment Pass. You can decide later whether to purchase one of our subscriptions or not.
