Forex

Investors scale back Fed rate cut bets as inflation stays hot.But economic growth slows more than expected in Q1.Will the Fed continue to signal patience?The Committee decides on Wednesday at 18:00 GMT.

Personal income saw a notable increase in March, along with a significant uptick in personal consumption expenditures, driven by higher spending on both goods and services.

Weaker than expected US growth due to strong dollar. Imports surged while exports rose modestly, hurting domestic producers. Trump blames strong dollar for hurting manufacturers and wants other countries to weaken their currencies.

Pound Sterling has mounted an impressive recovery against the Euro this week, but it must close the day near or above current levels to solidify the near-term outlook.

Economists expect 0.3% increases in March for both headline and core PCE price indexes, with year-over-year rises forecasted at 2.6% and 2.7%, respectively.

In March 2024, the yearly expansion rate of the broad monetary measure M3 rose to 0.9%, up from 0.4% in February, averaging 0.4% over the preceding three months.

Bank of Japan kept rates near zero, signaling future hikes but offered no clear guidance. Yen weakened further to a 34-year low against the dollar. Markets await details on future rate hikes and bond buying plans.

Euro loses ground as European Central Bank signals rate cuts.But only against US dollar - holds strong against pound and yen.

A look at the day ahead in Asian markets.

Loonie tumbles below 1.37 USD as weak Canadian spending boosts rate cut bets. Strong US dollar adds pressure. Technically mixed, near-term support at 1.3660. Long-term bullish if Canada's economy rebounds.