Daily Update - 3rd May 2017
Yesterday’s Market Yesterday’s explained Australia kept the interest rate unchanged, while rate statement did not provide a clear indication as to whether Australian economy will recover from the recent slump. Due to this Australian Dollar suffered heavy losses in the American Session where it fell to AUD/AED 2.745. While From Euro zone we saw a mix of negative and positive figures which kept the EUR at 4.00 – 4.02 levels. Euro will be looking for fresh impetus from GDP data which is to be released on Wednesday. Today’s Market Today’s Focus An important day in the economic calendar as major data will be released from Uk, Euro zone and US. First up from Euro Zone Unemployment rate, Unemployment Change, Gross Domestic Product & Producer Price Index will be released. These reports will be followed by PMI Construction which shows business conditions in the UK construction sector. From US session ADP Employment change & ISM Non-manufacturing PMI will be released. This will be followed by FED Interest Rate decision which is expected to remain unchanged. Day will end with Fed’s monetary policy statement where investors will be looking for clues on what will happen in June and whether a rate hike is possible. Without a press conference by the Fed chair or forecast updates the spotlight will shine solely on the text of the statement. Investors will be looking for insight into the FOMC meeting in June. The CME’s Fed futures contract prices show a 67.4 percent probability of a hike on June 14. While some markets will be looking forward to final TV debate between French presidential candidates Le Pen and Macron before fight for the final round of elections on 7th Sunday.
