Fed Surprise, USD Rises Again! - Kakiforex.com - Financial Market Media No. 1 in the World Fed Surprise, USD Rises Again! Fed Surprise, USD Rises Again!

May 21, 2021

Fed Surprise, USD Rises Again!

 Several Federal Reserve (Fed) policymakers are clearly prepared to consider changes to monetary policy based on the ongoing economic recovery, according to a report of the minutes of the FOMC meeting in April.

This prompted the US dollar to rebound against a basket of major currencies and the 10 -year US treasury yield approached 1.7% in the New York session.

Although there was no direct statement on tapering, some policymakers expressed their willingness to discuss plans to adjust asset purchase rates.

However, the statement was made just before the NFP employment data was released. Therefore, their view to do the reduction may change after seeing weaker -than -expected data.

Policymakers generally say that the economy is still far from the target of jobs and inflation. The Fed continues to assess that the fundamental outlook for economic activity tends toward a decline and uncertainty over the forecast is also increasing.

Following the resurgence of the US dollar, the euro slipped from a four -month high with the focus now on the release of European Zone manufacturing and services PMI data on Friday.

The pound also depreciated but remained stable above the 1.41000 level against the USD, supported by strong UK inflation data in March.