Daily Update - 30th April 2020
• USD Fed Interest Rate Decision • USD Federal Open Market Committee (FOMC) Statement • USD Gross Domestic Product (GDP) Price Index QoQ • EUR Germany Consumer Price Index (CPI) MoM The dollar fell on Wednesday after the Federal Reserve left interest rates unchanged and repeated a vow to do what it takes to shore up the economy that has been battered by business shutdowns due to the novel coronavirus. The greenback was also weighed down as signs the pandemic is receding in other countries and reduced safe-haven demand for holding funds in dollars. Positive trial results for a drug to treat COVID-19 also boosted the appetite for riskier assets. More countries are taking steps to re-open their economies as coronavirus infections slow, giving some cause for optimism. However, it will likely take several months for U.S. consumer spending to fully recover given the massive job losses, which has discouraged any extensive dollar buying. After a two-day policy meeting ending Wednesday, the Fed kept interest rates near zero and promised to expand emergency programs as needed to help the battered economy. Data released on Wednesday showed U.S. gross domestic product contracted by 4.8% in the first quarter - the sharpest contraction since the Great Recession. Economists say the second quarter could be even worse. The ECB, which announces its policy decision later Thursday, is under pressure to keep government bond yields from rising after rating agency Fitch cut Italy’s credit rating to one notch above junk due to the financial burden of the coronavirus outbreak. • EUR Eurozone Interest Rate Decision • EUR European Central Bank Monetary Policy Statement • EUR Eurozone Gross Domestic Product (GDP) QoQ • EUR Eurozone Consumer Price Index (CPI) YoY • USD Initial Jobless ClaimsYesterday Explained
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