Financial Markets Daily Report26 May 2022
Investors traded with an optimistic mood as the minutes of the FOMC last meeting showed a wide consensus among its members on the following steps on the interest rate path. Most participants think that further 50bp interest rate hikes in the coming two meetings (June and July) would be appropriate.
- Investors traded with an optimistic mood as the minutes of the FOMC last meeting showed a wide consensus among its members on the following steps on the interest rate path. Most participants think that further 50bp interest rate hikes in the coming two meetings (June and July) would be appropriate.
- Also, the assessment of the US economy (very strong, with an extremely tight labor market) encouraged traders to think inflation could moderate without causing a recession. In the euro area, some ECB members backed the plan, explained recently by president Lagarde, to end negative interest rates in Q3.
- In this context, volatility declined and stock indices rose across the board. Yields on sovereign bonds edged down in the euro area and remained stable in the US. In FX markets, the US dollar strengthened against most currencies and the euro fluctuated below $1.07.