The most traded currency pair looks weak on Wednesday. The current quote is 1.0740.
The minutes of the last US Federal Reserve meeting held on 2-3 May, which were published yesterday, give signals of the regulator’s readiness to take action if the situation with the US public debt does not stabilise. The Fed is concerned about the uncertainty over the government debt limit and the political impasse that is being created, with the Republicans and Democrats still unable to reach an agreement.
Monetary policymakers stressed the importance of timely raising the country's debt limit. This would avoid the risk of major shocks to the economy and financial system.
Recall that members of the Republican Party are pushing for radical cuts in public spending. Democrats are against it.
The market remains focused on the public debt issue. In addition, the next US GDP estimate for the first quarter of 2023 and the weekly jobless claims report are worth watching.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.