Several housing market conditions dampened the optimism felt at the end of 2023 and are hindering 2024 from getting back to pre-pandemic levels. Find out what we can expect in 2024 .
- European markets remain close for Easter Monday holiday. - Last Friday, Fed's Chair Powell following release of PCE deflator data said Fed is not under pressure to cut rates, but waiting too long could mean unneeded damages to the economy and the labor market; US jobs report for March set to be released this Friday.
Japan's Tankan survey for Q4 show signs of strength in both manufacturing and non-manufacturing sectors. Yet, the cautious outlook among manufacturers suggests uncertainty about future economic conditions.
The currency markets are currently in a state of anticipation, with Dollar trading within familiar range as investors await FOMC rate decision. The critical question facing the markets is whether Fed will signal the pace of rate cuts in its updated dot plot. In September, the median projection indicated the federal funds rate would remain at 5.125% by the end of 2024, implying no rate cuts from the current level. While revisions to this projection are expected, the exact pace and extent of potential rate cuts remain uncertain.
As the markets eagerly await FOMC rate decision and the release of new economic projections, Dollar is currently holding steady within a narrow range. The spotlight is particularly on the revised dot plot, as it is expected to provide crucial insights into the pace of monetary policy easing by Fed in the coming year. Investors are keenly looking for any signs of dovish policy shifts that could trigger risk-on sentiment, dragging down treasury yields and the greenback.