EURUSD: Slightly skittish with a shooting star candle just shy of trendline resistance. Chart/Levels from Analyst, Nicole Elliott – Investors Chronicle.

 

Undershooting inflation target ‘transitory’ Says Fed chairman Jerome Powell

Having kept the Fed Funds target unchanged at a band between 2.25 and 2.5 per cent, in the subsequent press meeting Mr Powell said, ‘’we suspect transitory factors may be at work. If we did see inflation running persistently below, that is something the committee would be concerned about and something we would take into account when setting policy’’. He also noted that the US job gains have been ‘solid, on average’ with solid economic activity. On Tuesday President Trump suggested the Fed should cut interest rates by 1 per cent because, at current levels, it was holding back the economy.

Data published in Europe this morning showed that annualised retail sales in Germany and Switzerland fell in March. This has often been the case for the latter, dropping 0.7 per cent, over the last four years or so. In Germany, where sales fell 2.1 per cent, the reading is towards the very lower end of the 20- year history of this notoriously erratic series.

Financial Markets and Political Commentary
 

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