{"id":13263,"date":"2024-06-13T10:43:39","date_gmt":"2024-06-13T10:43:39","guid":{"rendered":"https:\/\/www.vtmarkets.net\/?p=13263"},"modified":"2025-03-06T06:58:19","modified_gmt":"2025-03-06T06:58:19","slug":"forex-market-analaysis-usd-us-equities-post-fomc-insight","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/analysis\/13263\/","title":{"rendered":"Forex Market Analysis: USD &amp; US Equities Post-FOMC Insight"},"content":{"rendered":"\n<h1 class=\"wp-block-heading has-medium-font-size\">CURRENCIES<\/h1>\n\n\n\n<p><strong>USD and US Equities Post-FOMC Analysis<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fed trims rate cut expectations due to higher inflation forecasts.<\/li>\n\n\n\n<li>USD regains some strength on hawkish projections.<\/li>\n\n\n\n<li>US equities rally on lower yields and USD despite inflation concerns.<\/li>\n<\/ul>\n\n\n\n<p><strong>Fed&#8217;s Decision on Rate Cuts<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Rate Cut Adjustments:\n<ul class=\"wp-block-list\">\n<li>After May\u2019s inflation data, the Fed revised its interest rate outlook, reducing expected rate cuts for 2024 from three to one 25 basis point cut.<\/li>\n\n\n\n<li>This change was driven by persistent inflation, leading the Fed to adopt a more conservative approach, maintaining current restrictive interest rates.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Economic Projections:\n<ul class=\"wp-block-list\">\n<li>Growth and unemployment forecasts for this year remained unchanged.<\/li>\n\n\n\n<li>Labour market expected to ease slightly by the end of 2025.<\/li>\n\n\n\n<li>Headline and core PCE data projected to rise this year and next, with a firmer Fed funds rate anticipated over the same period.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>USD Performance on Hawkish Forecasts<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>USD Recovery:\n<ul class=\"wp-block-list\">\n<li>Hawkish forecasts helped the dollar recover some losses from earlier softer CPI data.<\/li>\n\n\n\n<li>Dollar continues its bullish momentum, but upcoming PPI data could influence its trajectory.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Market Reactions:\n<ul class=\"wp-block-list\">\n<li>Markets considered a second rate cut after the CPI print, but Fed projections cast doubt on this.<\/li>\n\n\n\n<li>Dollar strength is supported by a weaker euro, affected by political developments in France.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h1 class=\"wp-block-heading has-medium-font-size\">STOCK MARKET<\/h1>\n\n\n\n<p><strong>Market Overview<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>US inflation cooled in May, as per the Bureau of Labor Statistics.<\/li>\n\n\n\n<li>Consumer Price Index (CPI) remained flat month-over-month and rose 3.3% annually, both measures below expectations and lower than April&#8217;s increases.<\/li>\n<\/ul>\n\n\n\n<p><strong>Details of the CPI Report<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Headline Inflation:\n<ul class=\"wp-block-list\">\n<li>Monthly CPI increase: 0.0%, lowest since July 2022.<\/li>\n\n\n\n<li>Annual CPI increase: 3.3%, down from April\u2019s 3.4%.<\/li>\n\n\n\n<li>Decline driven by falling energy prices, especially gas.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Core Inflation:\n<ul class=\"wp-block-list\">\n<li>Monthly core CPI increase (excluding food and gas): 0.2%, lowest since June 2023.<\/li>\n\n\n\n<li>Annual core CPI increase: 3.4%, lower than April\u2019s 3.6%.<\/li>\n\n\n\n<li>Shelter costs remained a significant factor in core inflation, rising 0.4% month-over-month.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>Market Reactions<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Treasury Yields and Equities:\n<ul class=\"wp-block-list\">\n<li>10-year Treasury yield dropped by 12 basis points to around 4.29%.<\/li>\n\n\n\n<li>Stock markets rose: NASDAQ (+1.53%), S&amp;P 500 (+0.85%), Dow Jones (-0.09%).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Fed\u2019s Perspective:\n<ul class=\"wp-block-list\">\n<li>The CPI data provided a positive outlook for the Federal Reserve ahead of its policy decision.<\/li>\n\n\n\n<li>Despite the easing inflation, the Fed maintained a &#8220;bumpy&#8221; path to its 2% target.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>Economic Indicators and Projections<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Labor Market:\n<ul class=\"wp-block-list\">\n<li>Added 272,000 nonfarm payroll jobs in May, surpassing the 180,000 expectation.<\/li>\n\n\n\n<li>Wages rose 4.1%, with the unemployment rate slightly increasing to 4%.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Preferred Inflation Gauge:\n<ul class=\"wp-block-list\">\n<li>Core PCE price index remained steady at 2.8% year-over-year for April.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Rate Cut Expectations:\n<ul class=\"wp-block-list\">\n<li>Investors anticipate one to two 25-basis-point cuts in 2024, down from six cuts earlier projected.<\/li>\n\n\n\n<li>CME FedWatch Tool indicates a 69% chance of rate cuts starting in September, up from 53% the day before.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>Specific Index Movements<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Shelter and Rent:\n<ul class=\"wp-block-list\">\n<li>Shelter index rose 5.4% annually, 0.4% monthly.<\/li>\n\n\n\n<li>Rent and owners&#8217; equivalent rent each increased by 0.4% monthly.<\/li>\n\n\n\n<li>Lodging away from home decreased slightly.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Energy:\n<ul class=\"wp-block-list\">\n<li>Energy prices fell 2% monthly, up 3.7% annually.<\/li>\n\n\n\n<li>Gas prices dropped 3.6% from April to May.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Food:\n<ul class=\"wp-block-list\">\n<li>Food index rose 2.1% annually, 0.1% monthly.<\/li>\n\n\n\n<li>Food at home was flat, food away from home rose 0.4%.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Other Indexes:\n<ul class=\"wp-block-list\">\n<li>Increases: Medical care, used cars and trucks, education.<\/li>\n\n\n\n<li>Decreases: Airline fares, new vehicles, communication, recreation, apparel.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p>Click <a href=\"https:\/\/www.vtmarkets.net\/trade-now\/\" title=\"\">here<\/a> to open account and start trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CURRENCIES USD and US Equities Post-FOMC Analysis Fed&#8217;s Decision on Rate Cuts USD Performance on Hawkish Forecasts STOCK MARKET Market Overview Details of the CPI Report Market Reactions Economic Indicators and Projections Specific Index Movements Click here to open account and start trading.<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-13263","post","type-post","status-publish","format-standard","hentry","category-analysis"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"luna","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/luna\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/13263","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=13263"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/13263\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=13263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=13263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=13263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}