Dollar under watch
This Wednesday will see the conclusion of the FOMC’s two-day meeting. Fed funds rate target range are almost unanimously expected to remain in current range of 5.25% to 5.5%.
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FOMC meeting outcome
This Wednesday will see the conclusion of the FOMC’s two-day meeting. Fed funds rate target range are almost unanimously expected to remain in current range of 5.25% to 5.5%. Jerome Powell and other policymakers' comments over the past couple of weeks have led the market to abandon the idea of an initial rate cut in June. Instead, it thinks it won't happen before the second half of the year. According to the CME FedWatch tool, there is a 47% chance of a cut at 17-18 September meeting, and a 58% chance at 6-7 November meeting.
Prior to Fed decision, currency traders are likely to react ot ADP employment change, JOLTs data, as well as ISM Manufacturing PMI.
British house prices
British house prices fell unexpectedly for a second month running during April, according to Nationwide. House prices fell 0.4% month-on-month, after a 0.2% drop in March. A Reuters poll had pointed to a 0.2% increase.
Company profits and earnings reports
GSK raises its full-year profit forecast. it now expects a rise of 8% to 10% in annual adjusted earnings per share, up from the 6%-9% growth previously forecast. The British drugmaker reported a profit of 43.1 pence per share on sales of 7.36 billion pounds in Q1, above analysts' average expectations.
In the thirteen weeks to 27 April, Next reported full price sales were up +5.7% versus last year, slightly ahead of guidance +5%. The group maintains its sales and profit guidance for the full year, with Next Group profit before tax forecast to be £960m (+4.6%).
Amazon reported a tripling of its profit in the first quarter. But shares had a rollercoaster ride in extended trade. While earnings and revenues rose, revenue forecasts missed forecasts.
Earnings came in at 98 cents per share, better than the 84 cents anticipated. Revenue also beat forecast, rising 13% to $143.3 billion, $700 million more than thought. But the market was disappointed by Amazon's expectations for the current quarter. The company sees revenue between $144 billion and $149 billion, compared with analyst consensus expectations of $150 billion.
Pfizer is scheduled to unveil its quarterly report before market open. The street forecast earnings of 53 cents per share. Revenue is seen falling by about 23% to $14 billion.
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