Market Report 26-05-2022

Published: 25/05/2022 By ECAP

Sterling managed to absorb the lesser than expected PMI figures and has managed to push its head over the 1.26 level this morning, following the FOMC meeting minutes released late last night. The meeting minutes failed to surprise markets, the minutes confirmed a potential slowdown in hikes after two more half-point increases in June and July. The dollar index, which measures the currency against six major peers, was little changed at 102.03, consolidating around that level after a short-lived bounce immediately after the minutes on Wednesday.

EURUSD has managed to claw back its losses from yesterday and the pairing has breached over 1.0720 once more today, markets attention is focused on this afternoons preliminary GDP release for the US, expected at -1.3% from a previous reading of -1.4% should we see a figure sway from this forecast, then expect some movement on the greenback. With the slight shift from the FOMC to now slow the recent hikes, eyes will focus towards the Bank of England meeting scheduled for the 16th June, slightly later than normal schedule due to the Queens Jubilee celebrations.