As any Economics 101 student learns, the Federal Reserve is responsible for U.S. monetary policy, including setting the level of interest rates, and more recently, managing the central bank’s vast assets acquired through repeated iterations of Quantitative Easing.
Void of any major economic news from Europe or the United States, the dollar rose further first thing this morning while stocks came under some pressure. As the session wore on though, the dollar eased back a little against safe-haven currencies while European equities remained under pressure, undermined by a growing sell-off in Italian bond markets. This has been in response to Italy’s populist parties reaching a deal to govern the country together, which has raised concerns about the nation’s future in the Eurozone.
The U.S. dollar rally continues to gather steam as it appreciated against major pairs for a third week. The U.S. nonfarm payrolls (NFP) provided little support with a miss in both the headline job number and the much-anticipated wage growth component. The main takeaway from the jobs report was the drop in the employment rate from 4.1% last month to 3.9%.
The dollar is showing signs of momentary weakness after the latest FOMC statement indicated to investors that the Federal Reserve will not raise U.S. interest rates at a faster pace than has already been priced into the market.
Financial technology is the engine of market innovation and growth. Here is an examination of fintech based on a survey of members of the World Federation of Exchanges and an analysis of McKinsey & Co. clients.
The U.S. dollar had massive weekly gains against all majors. The release of the gross domestic product for the first quarter of 2018 beat expectations but did little for a dollar that had rallied all week. Dovish central bank rhetoric from the European Central Bank and the Bank of Japan have increased the anticipation for the U.S. Federal Reserve’s Federal Open Market Committee on Wednesday, May 2 at 2:00 p.m. EDT.