Earlier in the week investors paid close attention to the outcome of an Australian central bank (RBA) policy meeting which saw interest rates rise higher than market expectations.
Next to be the main focus this week that investors have been waiting for since last week is the FOMC meeting earlier this morning.
The meeting’s results met forecasts with an aggressive 50 basis point interest rate hike by the Federal Reserve (Fed), the biggest hike in 22 years.
But the reaction to the US dollar was disappointing when it showed a decline following a follow -up statement by Chairman Jerome Powell that the central bank would not consider a 75 basis -point rate hike.
Although the US dollar weakened, market analysts remain expecting the king of the currency to rebound for an outstanding performance over a longer period of time.
Now the focus will be on the results of the policy meeting of the central bank of England (BOE) today at 7 pm local time.
The BOE is also expected to continue the interest rate hike measures it has undertaken for several previous meetings. The Pound will react following the results of the meeting announced.
While over the weekend, investors will be wary of the movement of the U.S. dollar and the Canadian dollar for the issuance of the Canadian jobs report and more of a concern, the U.S. NFP jobs data report for April.
The US dollar will face greater resistance with expectations of weaker figures for the latest NFP jobs report following the ADP jobs report for the private sector published on Wednesday also displaying disappointing readings.
