Fed sticks to its plan despite recent inflation data
The Fed left rates unchanged as expected on Wednesday evening and held onto their outlook for three cuts in borrowing costs this year.
(Partial Video Script)
Fed leaves rates unchanged
The Fed left rates unchanged as expected on Wednesday evening and held onto their outlook for three cuts in borrowing costs this year. Chairman of the Federal Reserve, Jerome Powell, said recent high inflation readings had not changed the underlying "story" of slowly easing price pressures in the US, but added that recent data also had not bolstered the central bank's confidence that the inflation battle has been won. While US dollar and bond yields ticked lower after the Fed decision, gold prices and several indices climbed to record highs.
BoE to publish rates decision
The Bank of England (BoE) will publish its decision on rates at noon on Thursday and is not expected to move. Like all other central banks, the BoE tries to be as transparent as possible and in recent years only moves when it releases its quarterly economic forecasts.
These are out in May and then again in August and it's at that later meeting when the markets are expecting a cut. But wages are a concern for the BoE, as pay is rising faster than consumer price inflation, which is something the BoE hawks are most concerned about.
Japanese trade deficit
In Japan, trade deficit decreased sharply to ¥379 billion in February. Exports rose by 7.8% YoY, a third straight month of growth. Meanwhile, imports increased at a softer 0.5%, the first rise in 11 months.
Australian unemployment rate
In Australia, unemployment rate fell to 3.7% in February to its lowest level since last September, from 4.1% in January, and way below market forecasts of 4%. Employment surged 116.500 to a record 14.27 million.
Manufacturing and PMI data
On Thursday, the market awaits manufacturing and services PMI data around the globe. Also expected today in the US, initial jobless claims and new home sales.
Next and Direct Line Insurance
Next total group sales up 5.9%. Pretax profit rose 5% to £918 million, largely due to better-than-expected clearance rates of sale stock in January. Direct Line Insurance’s written premiums increased 27.1%, with 46.2% growth in H2.
Micron Technology
Memory chip maker Micron Technology saw shares climb 20% all-sessions on the IG platform after AI drove Q2 earnings. It announced second-quarter fiscal 2024 results that beat analysts and offered rosy guidance. The company said it has benefitted from the artificial intelligence boom.
Earnings came in at 42 cents per share. Analysts had expected a 26 cent loss. Revenue also beat the market forecast. For its fiscal third quarter, Micron expects to report revenue of $6.6 billion, above the $6.02 billion expected by analysts.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
