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USD drops after dovish Fed

 

MARKET NEWS

 


Jay Powell says Fed still ‘a long way’ from withdrawing monetary support - FT

 


In a press conference following the conclusion of policymakers’ two-day meeting, the Fed chair affirmed that the US central bank was not yet ready to discuss tapering its massive programme of asset purchases.

 


Gold Erases Drop as Powell Says ‘Not Time Yet’ For Tapering Talk - Bloomberg 

 


Bullion rose to a session high as falling bond yields increased demand for the precious metal, which doesn’t offer interest. The dollar also declined.

 


NZD/USD bulls take control on the back of the Fed – FX Street

 


NZD/USD is heading into the Asian shift on the bid following the Federal Reserve event that took the US dollar down a peg or two. 

 


U.S. stocks end lower, despite Powell vow to keep Fed policy supportive for some time – Market Watch

 


U.S. stocks closed lower Wednesday after the Federal Reserve opted to keep rates near zero, as expected, and monetary policy loose at the conclusion of its two-day policy meeting.  Investors also geared up for President Joe Biden to unveil a new $1.8 trillion package of spending and tax cuts Wednesday evening that aims to bolster children and families.

 


Apple sales soar as consumers snap up 5G-enabled iPhones – FT

 


Apple posted double-digit growth in the first quarter of 2021 in all of its businesses, led by iPhone sales that surged by two-thirds from a year ago… Tim Cook, chief executive, said the results reflected “the enduring ways our products have helped our users meet this moment in their own lives”.

 


Facebook smashes revenue estimates but warns Apple change could hobble growth – Reuters

 


Facebook Inc beat Wall Street expectations for both quarterly revenue and profit on Wednesday but warned that growth later this year could “significantly” decline as new Apple Inc privacy policies will make it more difficult to target ads. The company's shares were up 5% in extended trading.

 


MORE HEADLINES

 


•    EUR/USD soars to highest since March on Fed's dovish message
•    SEC delays decision on VanEck bitcoin EFT filing until at least June – Forex Live
•    China’s Post-Covid Travel Frenzy May Break Record This Labor Day - BNN
•    India reports record new cases and fatalities, official Covid death toll surpasses 200,000
•    Dogecoin price surges after tweets from Elon Musk and Mark Cuban - CNBC
•    Oil prices rise more than 1% on fuel demand optimism - CNBC

 


ANALYSIS

 


USD: Risk tilting toward an earlier or faster rate of depreciation – Wells Fargo

 


“Recent U.S. economic data have been sturdy, a trend that should continue and be supportive of the greenback. A renewed rise in U.S. bond yields would also be a supportive factor. That said, if the Federal Reserve does not follow through with monetary tightening for an extended period, we eventually anticipate some slippage in the U.S. dollar, especially as international growth picks up. Risk-sensitive emerging and commodity currencies in particular should perform solidly if the global economic and market environment improvement.”

 


WISDOM

 


“Business opportunities are like buses, there’s always another one coming.” – Richard Branson

 


CHART

 


NZD/USD – Daily Candlesticks


  
Source: GKFX Metatrader 4 

NZD/USD has rallied strongly since breaking a down-sloping trendline that began at its multi-year high. It now faces resistance from the March 18 peak around 0.727 - Prepared by Trading Writers*

 


CALENDAR

 


*Times in GMT


 
Source: FX Street Economic Calendar

 

 

Footnotes

 


1.    https://www.fxstreet.com/economic-calendar


2.    https://www.ft.com/content/f5042df8-52d4-4527-af1d-5ed70a96b0b5


3.    https://www.fxstreet.com/news/nzd-usd-bulls-take-control-on-the-back-of-the-fed-202104282030


4.    https://www.fxstreet.com/news/usd-cad-targets-a-break-of-123-as-fed-stays-doveish-and-goldman-predicts-record-oil-demand-202104281921


5.    https://www.forexlive.com/cryptocurrency/!/sec-delays-decision-on-vaneck-bitcoin-eft-filing-until-june-report-20210428


6.    https://www.bnnbloomberg.ca/china-s-post-covid-travel-frenzy-may-break-record-this-labor-day-1.1596663


7.    https://www.bnnbloomberg.ca/gold-erases-drop-as-powell-says-not-time-yet-for-tapering-talk-1.1596576


8.    https://www.marketwatch.com/story/dow-futures-edge-lower-as-investors-weigh-tech-earnings-await-fed-11619610424?mod=markets


9.    https://www.cnbc.com/2021/04/28/india-covid-second-wave.html


10.    https://www.cnbc.com/2021/04/28/oil-markets-covid-in-india-us-crude-stocks.html


11.    https://www.cnbc.com/2021/04/28/dogecoin-price-surges-after-tweets-from-elon-musk-and-mark-cuban.html


12.    https://externalcontent.blob.core.windows.net/pdfs/85bf46a4-133d-4765-98b0-b15e77fc3c8b.pdf