Sustained Or Temporary Rally?

The futures market is now betting that the Fed will not cut its 2.25% target lending rate by 50 bp on April 30, compared with 46% chance a week ago. It is pricing in a 98% chance of a quarter-point rate cut. The US dollar is likely to start the new trading week with a bullish tone, rubbed off by optimism in the stock markets, but if US data such as durable goods and housing fail to meet consensus, any rebound could slow down or be hampered again. The greenback will also be influenced by US companies’ earnings reports next week.