Morning Market Update – Greenback in Trouble

Dallas Federal Reserve Bank President Kaplan stated that there should be two more rate hikes for this year. The FOMC minutes indicated that the policy makers are willing to unwind the balance sheet this year. We expect the Federal Reserve to show more progress to achieve the 2% inflation target.

Japanese Foreign investments in stocks dropped down from a previous ¥372.2B to ¥-26.4B. Singapore Gross Domestic Product (YoY) was in line with the forecasted values (2.7%) in 1Q. South Korea’s Interest Rate Decision met the expected values (1.25%) this month.

The next major news is for the Sterling with the Gross Domestic Product remaining the same when compared to the previous value. Greenback starts off with the Continuing Jobless Claims showing better results with 1.925M versus the previous value which was seen at 1.8988M.

The Initial Jobless Claims came in at 238K when compared to the previous value which was seen at 232K. The Goods Trade Balance saw a slight dip
with 64.7B versus the previous value at 65B. This may cause some trouble for the greenback. Any positive comments from FOMC Member Lael Brainard can hold the greenback and control them from seeing any major decline today.
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