AI image
The Federal Reserve has set the stage for a May 3 hike of 25 basis points.
That's 90% priced in and Fed officials are likely comfortable with that, given the latest round of communication. Starting at midnight, they won't have a fresh opportunity to manager market expectations, unless it's via a leak.
The blackout period will lead to a quieter market next week for USD traders but the focus will increasingly shift to the subsequent meeting, where a moderate chance of another hike is being priced in.
Highlights on the US economic data calendar next week include: consumer confidence, new home sales, the Richmond Fed, durable goods orders, Q1 prelim GDP and the PCE report. For more, see the economic calendar.