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.