FOMC remains on hold; views growth slowdown as “transitory” | 04/05/17

[IronFX The Global Leader in Online Trading]( 4th May 2017 [start trading]( [open demo account]( All trading involves risk. It is possible to lose all your capital. Main Points of Today FOMC remains on hold; views growth slowdown as “transitory” - The Fed kept its policy unchanged. The statement was neutral, and very similar to the prior one. - Most noteworthy point was that it views the slowdown in Q1 GDP growth as transitory. - USD gained on the news, as the prospect of a June hike is firmly on the table. - Now, focus turns to Friday’s employment data, which could determine USD’s near-term direction. UK local elections to set the tone for the General Election? - These may attract attention as a gauge of whether the polls are right for the General Election. - General election polls show the Conservatives at roughly 46%. If they gather less support than that today, GBP could reverse some of its recent gains. - On the other hand, a strong showing could suggest the polls are correct, and GBP could gain. As for the rest of today’s highlights: - Norway: Norges Bank decision (08:00 GMT). Expected to remain on hold. Policymakers could retain a dovish tone amid slowing inflation, which could hurt NOK. - UK: Services PMI for April (08:30 GMT) is expected to have declined. We see upside risks to that forecast. In case of a positive surprise, GBP could come under renewed buying interest. - Speakers: ECB President Mario Draghi and Executive Board member Sabine Lautenschlager. Focus will be on Draghi for any hints on whether the ECB may appear more optimistic soon. [Download full report]( The Market USD/JPY [Image title] - Support: 112.35 (S1), 111.90 (S2), 111.40 (S3) - Resistance: 112.90 (R1), 113.50 (R2), 114.50 (R3) GBP/USD [Image title] - Support: 1.2770 (S1), 1.2700 (S2), 1.2615 (S3) - Resistance: 1.2950 (R1), 1.3000 (R2), 1.3050 (R3) [View all Market insights]( [View IronFX Week Ahead report]( Economic Calendar [Image title] Prepared by: Charalambos Pissouros, Sakis Paraskevov and Marios Hadjikyriacos [Facebook]( [Linkedin]( [Instagram]( [Twitter]( [Google+]( [YouTube]( - Tel: +44(0) 203 282 7777 - Email: support@ironfx.com High Risk Trading Warning: Our services include products that are traded on margin and carry a risk of losing all your initial deposit. Before deciding on trading on margin products you should consider your investment objectives, risk tolerance and your level of experience on these products. Trading with high leverage level can either be against you or for you. Margin products may not be suitable for everyone and you should ensure that you understand the risks involved. You should be aware of all the risks associated in regards to products that are traded on margin and seek independent financial advice, if necessary. Please read IronFX’s Risk Disclosure statement. This website is owned and operated by the IronFX Group. Licences and Authorisations IronFX Global Limited is authorized and regulated by CySEC (Licence no. 125/10) Group Licences and Authorisations 8Safe UK Limited is authorized and regulated by the Financial Conduct Authority (FCA no. 585561) GVS (AU) Pty Limited is authorized and regulated by ASIC (AFSL no. 417482) IronFX does not offer its services to residents of certain jurisdictions such as USA, Iran, Cuba, Sudan, Syria and North Korea.