Forex News Roundup & other current affairs for 4th May 2023
- The Reserve Bank of Australia announces a 0.25% rate hike to everyone’s surprise as an effort to bring down the inflation which has already crossed 7%. This move had an impact on major Aussie Dollar pairs as AUD/USD pairs gained over 70 pips.
- The Japanese Yen continues to go down as it stands as one of the weakest currencies at the moment while AUD is showcasing short-term strength.
- USD is falling again as a result of the long term bearish trend which could be a good opportunity for traders to go long on several majors like EUR/USD and GBP/USD.
- Analysts believe that the Federal Reserve may be planning for rate cuts in the 2nd half of 2023 as they expect a rate hike of 0.25% for the month of May.
- Tomorrow will be decisive for the markets as a FOMC meeting will be held announcing the Fed’s rate hikes.
- The core inflation of the Euro zone slows down contrary to the expectations and the rise in headline inflation may force the ECB to adopt a hawkish tone yet again with a 0.50 rate hike.
- Alfred Kammer, director of the European Department at IMF stated that further rate hikes will be required for defeating the inflation that is being experienced in the Eurozone.
- Bank of Japan Governor Kazuo Ueda states that the risks faced by Asian economies are smaller in comparison to other major economies in a briefing after attending the ASEAN+3 meeting held in South Korea.