S&P 500. Daily chart. Traders are awaiting data on US GDP

Yesterday, US major indices fell slightly by about 0.3-0.5%. However, the market hardly changed following the Fed's statement. The Fed left its monetary policy unchanged, with interest rates remaining in the 0-0.25% range, and maintained quantitative easing monthly asset purchases at $120 billion. However, the regulator pointed to the ongoing surge in inflation. The Fed attributes higher inflation to huge $1,400 stimulus checks paid to 100 million Americans. Nevertheless, the authorities believe that inflation will fall back soon.

Asian markets edged up by about 0.3% following the news from the Fed. The euro advanced to 1.2150 against the dollar. Oil prices rose by 0.5% in early trade.

The coronavirus pandemic continues to spread around the globe. The world has seen a new record number of confirmed infections - an increase of 890 thousand cases. India has become a global epicenter of rising COVID-19 infections, reporting an increase of 380 thousand cases. However, the market ignores this fact. Despite a higher number of coronavirus infections, the US stock market continues to rise. The reason is that the situation in India is far less important to market participants than the situation in the United States, where the economy is actively growing amid progress on vaccinations. The situation in Europe is also important to investors. However, there is still no strong economic growth in the European region as France and Germany report an increase of about 25-30 thousand COVID-19 cases per day.

Today's data on US gross domestic product is in the focus of market participants. Traders are wondering whether the forecasts of a 6.8% rise in US GDP in the first quarter will come true.

S&P 500: 4,183. Projected range: 4,205–4,140. The market is about to enter a great correction as it is no longer ready to grow even on Biden's new $1.8 trillion 'families plan'. If there is a piece of negative news, the market will most likely make a significant downward movement. Apple's revenue increased 1.5 times to $52.4 billion in the first half of the year. Airbus reported a profit of €362 million ($439 million) in the first quarter, while it suffered losses a year earlier.

USDX: 90.60. Yesterday, the US dollar index fell to 90.25 as the market considered the Fed's position negative for the dollar. Projected range: 90.20–90.90.

USD/CAD: 1.2308. The Canadian dollar broke down the important support of 1.2360. As a result, the pair's decline accelerated, as expected. However, its downward movement is likely to be limited. Bulls need to wait for a strong rebound and only then start buying the pair again.

Conclusion: Market participants are awaiting the US GDP report. Further dynamics depend on the market reaction. A correction is highly likely, even if it is followed by a new rally.