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Market Looks to Federal Reserve Post-Meeting Statement; Oil Prices Rise on Supply Data

Published May 3, 2017
  • The Federal Reserve will conclude its two-day policy meeting today at 2:00PM EST; the Fed will release a post-meeting statement without economic projections or a press conference with Fed Chair Janet Yellen
  • Investors widely expect that the Federal Reserve will leave interest rates at 0.75%-1.00%; analysts are predicting a 4.8% chance of a hike in this meeting and a 67.4% chance of a hike for the next meeting in June
  • The post-meeting statement will be studied closely for any change in tone regarding the outlook for the rate hike schedule
  • Recent data on the health of the US economy has been mixed; this morning’s ADP Non-Farm Employment Change showed a slight decrease in new jobs
  • Oil prices are up this morning after industry data showed a much larger than expected fall in US crude oil inventories; data from the American Petroleum Institute showed oil inventories fell by 4.2 million barrels
  • Further data on oil inventories from the US Government’s Energy Information Administration is set to be released at 10:30 AM EST; Brent Crude is holding above the psychologically important $50 support level
  • The Canadian dollar recovered from yesterday’s 12-month lows against the greenback yesterday; higher oil prices are softening USD/CAD into to the low 1.37s