Market Opportunities : Week 02-05-2022 - 06-05-2022

USDIDX: Federal Reserve interest rate decision is the major event in the May 2 - 6 week. Fed chair Jerome Powell will hold a conference on May 4. He has expressed his support for a half-point increase in the benchmark rate at May policy meeting. Investors will be watching closely for any information on the pace of further rate hikes. Several members of the central bank’s policy setting committee have stated their support for half-point interest rate hikes during the year to combat high inflation. In case of indication for majority support for further half- point rate hikes the USDIDX will get a bullish boost.

GBPUSD: Bank of England (BOE) interest rate decision due May 5 is an important event for forex markets. BOE raised interest rate at its last meeting and traders are anxious to see if policy makers’ determination to continue raising interest rates has not weekend in light of weak recent reports like the retail sales disappointment. A decision to continue raising rates will be bullish for GBPUSD.