US Dollar Aims to Extend Rally on FOMC Minutes, Powell Speech

Daily Update – 22nd May 2018

Yesterday’s Market

•             USD Chicago Fed National Activity Index

•             EUR Euro Market Closed

Yesterday Explained

In the US, Chicago Fed National Activity Index for April resulted at 0.34 well above the 0.14 expected, while March figure was revised to 0.32 from a previous estimate of 0.10. The speeches from three FOMC members end the day with a stronger USD.

In the Europe, Market was closed due to the Whit Monday. No reports for the Euro zone was published yesterday.

Today's Market

•             GBP Inflation Report Hearings

•             USD Richmond Fed Manufacturing Index

Today’s Focus

The Euro market will likely be capped by Italian political uncertainty. As per latest reports, Italy is close to forming a populist government, hence the 10-year Italian-German bond yield spread may continue to rise in the EUR negative manner. 

From US we will see Richmond Fed Manufacturing Index survey  which will be including information on shipments, new orders, order backlogs, and inventories conducted by Federal Reserve Bank of Richmond provides information on current activity in the manufacturing sector. The industry inflation can be seen from the survey. The speech from FED Chairman Jerome H. Powell on the weekend Friday will be closely watched by the investors as this will steer the market.