The Fed’s Meeting: What To Expect?
By Kira Iukhtenko
The FOMC meeting on Wednesday, April 27th is the most expected event of the coming week. Note that there is no press-conference scheduled after the meeting. According to consensus forecast, the April meeting could become a non-event for the Forex market: interest rate is widely expected to stay in a narrow 0.25-0.5% range. Considering the comments of the Fed’s chief Janet Yellen after the March meeting, economy is not ready for a new hike these days.
Traders all over the world will be waiting for hints about the June meeting, but the Fed is unlikely to provide us with this information on Wednesday, given the fact many changes could take place in the coming 6 weeks. We expect the US Dollar to stay under pressure both ahead and after the event.
As for the other events in the US, don’t miss the advance Q1 GDP on Thursday. GDP is expected to come at +0.2% in an annual pace versus +1.4% in the fourth quarter. On Friday, you may watch the consumer expenditure data.