IronFX, All of Fed’s policymakers saw a strengthening economy & Drums of war sound louder
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This article is originally referred from IronFX News - Peter Iosif.
Drums of war sound louder
- Russia announced yesterday, that it will hit any missile trying to hit Syrian ground and target it’s source as well.
- President Trump twitted in response that Russia should get ready because the missiles will be coming and they are new and smart.
- Theresa May seems also to be about to get Cabinet approval today, for the UK to participate in a possible conflict.
- No timetable seems to be laid out however clouds of war seem to be drawing near.
- Gold and oil gain as they seem to be feeding on the news. Any further escalation could push prices higher.
All of Fed’s policymakers saw a strengthening economy
- All participants in the latest FOMC meeting, seem to agree that the US economy outlook is stronger than previously anticipated and that inflation (yoy) will most probably reach the 2% target.
- Also, all agreed on gradual rate hikes and a strong majority considers trade retaliation acts as a downside risk.
- The minutes definitely have hawkish elements in them however do not clearly provide signals for a 4 rate hike path.
- Overall, we could see the US Dollar strengthening in the long run, as the arguments for a more hawkish stance prevail. Especially considering that the possibility for a possible trade war could be lower.
Today’s other economic highlights
- France: Final CPI (EU Norm.) rate for March, Survey: +1.7% yoy Prior: +1.7% yoy, 06:45 GMT, could be positive for EUR
- Sweden: CPI rate for March, Survey: +2.0% yoy Prior:+1.6% yoy, 07:30 GMT, could support the SEK
- Eurozone: Industrial Production for February, Survey:+0.1% mom Prior:-1.0% mom, 09:00 GMT, could support EUR
- ECB’s meeting minutes are published,11:30 GMT
- US: Initial Jobless Claims, Survey: 230K Prior: 242K, 11:20 GMT, could support the USD
- OPEC Monthly report, 11:20 GMT
- Speakers: ECB member Coeure (12:15 GMT), BuBa President Weidman (16:15 GMT) and BoE governor Carney (19:00, GMT) speak.
Daily Market Report – April 12th
Original Source: IronFX News - Peter Iosif
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