Last week, the attention of the markets was focused on the ECB meeting. Today, the market is waiting for any decisions made by the Fed in its April meeting, which will be disclosed at 20:00 hours CEST.
Jerome Powell is not expected to announce any kind of change in current Federal Reserve policy in the short term like Christine Lagarde did for the ECB last week, although some analysts are of the opinion that we could see some kind of comment on a possible withdrawal of the Federal Reserve’s current stimulus for the end of the year, although we may not see any comment of this kind until the Jackson Hole meeting.
At the moment, the market remains on hold and for now, we can see a slight rebound of the dollar of 0.17% after marking monthly minimums last Monday at $90.67. During April, the dollar lost 2.33% against the main currencies after beginning a correction that has led it to face its medium-term uptrend line from the annual highs at the end of March at $93.43.
We must be attentive to the words of Jerome Powell as they could have an immediate impact on the dollar. The loss of its current trend line and main support level would open the doors for a further correction to the important level of $ 90.00 which could jeopardize the annual rise.
Source: Admiral Markets MetaTrader 5. Daily graph of the dollar index. Data range: from December 27, 2019, to April 28, 2021. Prepared April 28, 2021, at 11:50 am CEST. Keep in mind that past returns do not guarantee future returns.
Price evolution in the last 5 years:
- 2020: -6.42%
- 2019: 0.34%
- 2018: 4.26%
- 2017: -10.22%
- 2016: 3.59%
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