Market Opportunities : Week 01-05-2023 - 05-05-2023

USDIDX: Federal Reserve interest rate decision is the key event in the May 1 - 5 week. Fed chair Jerome Powell will hold a conference on May 3. Several members of Federal Open Market Committee have voiced their support implementing another rate hike to contain inflation. Recent mixed data have spurred some speculation the Federal Reserve may pause rate hikes in light of heightened risks of financial turmoil after bank failures. Majority of traders expect a 25 basis points increase in the benchmark rate and a 50-basis point increase will be bullish for the USDIDX.

EURUSD: European Central Bank interest rate decision is a major economic event for forex market. European Central Bank will hold its conference on May 4. ECB has said it plans to raise rates to curb inflation back to its target rate of just above 2%. Majority of traders expect a 25 basis points increase in the benchmark rate and a 50-basis point increase will be bullish for the EURUSD.