Investing.com – The holidays and the approach of the monetary policy statement from the Federal Reserve to prevent any significant movement of the currencies this Wednesday morning, the Euro is retaining the bulk of its gains after a report on GDP for the first quarter stronger than expected Tuesday.
With the closure of markets in Japan and in much of Europe, the declarations of the Fed, expected at 20: 00 and the press conference of the chairman Jerome Powell, occulteront probably any other event of market Wednesday.
The decision to keep the official rates unchanged of course, so it is likely that the market is more interested in the interpretation of the report on GDP released last week by the Fed. Analysts have argued that the underlying dynamic of the economy was lower than the annualised growth of 3.2% suggested, but this is not enough to justify a reduction of the interest rate, as requested by the president, Donald Trump.
At 10.20 am, the Euro was at 1.1225 USD, up 0.1% compared to Tuesday evening to New York, while it was suspected that the GDP of the zone euro on Tuesday, has perhaps not been as strong as it seemed.
“The short-term risks related to the Brexit and Italian politics have declined, but we believe that they are likely to remain present until the end of the year,” wrote analysts at Barclays. They stated that it was more likely that the growth slows down again rather than go beyond the 0.4% in the first quarter.
The british Pound, meanwhile, stood just above 1,3000 USD after the labour party opposition has refused to join a second referendum on the Brexit in the framework of its campaign for the parliamentary elections in the EU that will take place later this month.
The Dollar Index, which measures the greenback against a basket of six major currencies, was at 97,205, with no change.
The prospect of the conclusion of a trade agreement between the United States and China seems to be improved, after reports that the United States would have abandoned one of their main demands – in their insistence that China put an end to the allegations of cyber-vol, The sources of the Financial Times told them that it was most likely a trade agreement.
“The talks cannot go on indefinitely and both parties were in need of a victory,” said Helen Thomas, founder of the consulting firm Blonde Money to Oxford. President Donald Trump “may not always get all he wants,” she said, noting its previous negotiations with Mexico and North Korea. “But this did not matter to him. As long as he can sell it as a victory, regardless of the details.”