29 Apr 2015
FOMC not as dovish as expected, dollar claws back ground - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet noted that the dollar had a rough day.
Key Quotes:
"Hit at the beginning of the American session by worse-than-expected GDP readings: real gross domestic product increased at an annual rate of 0.2% in the first quarter of 2015, according to the first estimate released by the Bureau of Economic Analysis, far below expectations of a 1.1% increase or the previous quarter final reading of 2.2%."
"The EUR/USD pair jumped above 1.1050, former highs, and advanced even further afterwards, reaching a daily high of 1.1187, despite US Pending home sales in March continued their recent momentum, rising for the third straight month and remaining at their highest level since June 2013, adding 1.1%. Finally, by the end of the US session, the FOMC release its statement for its 2-day meeting, with a slightly hawkish tone that surprised market."
"The FED once again blamed the slowdown of the first quarter to the cold weather, said that jobs gain have been "moderated" compared to previous "strong", but for the most avoid any comment on a possible date for a rate hike. Chances of a June move are now even lower, but the dollar is recovering some of the ground lost amid the less-dovish than expected tone."
Key Quotes:
"Hit at the beginning of the American session by worse-than-expected GDP readings: real gross domestic product increased at an annual rate of 0.2% in the first quarter of 2015, according to the first estimate released by the Bureau of Economic Analysis, far below expectations of a 1.1% increase or the previous quarter final reading of 2.2%."
"The EUR/USD pair jumped above 1.1050, former highs, and advanced even further afterwards, reaching a daily high of 1.1187, despite US Pending home sales in March continued their recent momentum, rising for the third straight month and remaining at their highest level since June 2013, adding 1.1%. Finally, by the end of the US session, the FOMC release its statement for its 2-day meeting, with a slightly hawkish tone that surprised market."
"The FED once again blamed the slowdown of the first quarter to the cold weather, said that jobs gain have been "moderated" compared to previous "strong", but for the most avoid any comment on a possible date for a rate hike. Chances of a June move are now even lower, but the dollar is recovering some of the ground lost amid the less-dovish than expected tone."