Enter your emailit will likely keep falling as bears target the lower side of the channel at 1.0980.Timeline: 1 day.pair remained under pressure on Monday morning as investors reflected on the latest American non-farm payrolls and the ongoing crisis in Ukraine.AdvertisementA key theme in the market has been on the Federal Reserve and the need to be more hawkish. A case for more aggressive rate hikes happened last week when the US published the latest NFP data.
Other numbers in the report were also positive. For example, according to the BLS, the unemployment rate declined from 3.8% in February to 3.6% in March. This was its lowest level it has been since the pandemic started. Wages and participation growth also continued rising as the tightening continued. Early during the week, the BLS said that the number of vacancies in the economy remained above 11 million while the number of initial jobless claims fell.
Therefore, with inflation rising quicker than expected, analysts believe that the Federal Reserve will embrace a more hawkish tone in the next meeting. Some analysts expect that the next rate hike will be about 0.50%. Indeed, Fed officials have also sounded optmimistic that they will deliver a 0.50% hike.
In a statement to the Financial Times during the weekend, Fed’s Mary Daly said that she was in support of a 50 basis point hike. She said that a case for 50 bps, barring any negative surprise had grown among her colleagues. She now believes that the neutral policy rate to be between 2.3% and 2.5%, meaning that the bank will need several more 50 basis point hikes.The EUR/USD pair retreated last week as investors focused on the EU gas crisis and the strong numbers from the United States.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Daily_Forex - 🏆 567. / 51 Read more »
Source: Daily_Forex - 🏆 567. / 51 Read more »
Source: Daily_Forex - 🏆 567. / 51 Read more »
Source: FXStreetNews - 🏆 14. / 72 Read more »
Source: Daily_Forex - 🏆 567. / 51 Read more »
Source: DailyFX - 🏆 305. / 63 Read more »