Now: Dollar in Control Before a Long Weekend
The Greenback still quite menacing compared to other major currency. Although it does give up some of its recent gain, the momentum shows clearly that the king still in control ahead of the Good Friday holidays.
European Central Bank
ECB become one of the main attractions for the market participants as the interest rate decision came out as market anticipate. It keeps the rate hike on hold while at the same time convince that it will end its bond-buying program by the third quarter this year. The down slope of the purchasing amount for the program from April €40B, May €30B and June €20B.
This statement although seems hawkish in normal circumstance is actually quite dovish in the current situation. The geopolitics situation between Russia and Ukraine affecting the economic situation in Europe especially as the price for energy and commodity skyrocketing after the production and supply slowdown. This situation resulting in a very steep increasing in inflation which put heavy pressure on Europe economy.
The president of the New York Fed, John Williams state that the central bank should consider hiking the rate by 50 basis point in May meanwhile the Loretta Mester the President of Cleveland Fed on other hand state that the goal of the Fed is to reduce its accommodation policy to control the current inflation at the same time able to sustain the current economy growth.
15 April 2022