All Articles Tagged - Fed

Asian Session – Dollar struggles below 100 yen as FOMC minutes show split views

Posted on August 18, 2016 at 7:47 am GMT

The US dollar stumbled after the minutes of the July FOMC meeting revealed the Fed was still in no hurry to raise rates. The minutes, published yesterday, showed a growing division within the FOMC on the timing of the next rate rise. According to the minutes, a couple of participants advocated for a rate hike in July arguing that the labor market is nearing full employment. However, several other members thought there would be “ample time” to respond if inflation [..]

Fresh rate talk by Fed officials ups odds of 2016 rate hike

Posted on August 17, 2016 at 1:16 pm GMT

The odds of a rate hike by the Fed in 2016 as implied by the futures market rose above 50% on Tuesday for the first time since the Brexit referendum. Regional Fed presidents William Dudley and Dennis Lockhart yesterday reignited expectations that the Fed could tighten policy this year, adding to the rate rise calls by John Williams made last week. Expectations of a US rate increase had receded after the shock ‘leave’ outcome of the UK’s EU referendum as [..]

US inflation remains muted as energy prices fall for first time in 5 months

Posted on August 16, 2016 at 2:27 pm GMT

Consumer prices in the United States showed few signs of accelerating as annual CPI eased to 0.8% in July from 1.0% in June. Consensus forecasts were for CPI to slow to 0.9%. On a month-on-month basis, prices in July were unchanged from June, as expected. A 4.7% drop in gasoline prices over the month – the first decline in five months – dragged down the consumer price index. Overall energy prices were down by 1.6%. However, this was partly offset [..]

July employment report gives hope to dollar bulls following GDP, Fed disappointments

Posted on August 8, 2016 at 2:22 pm GMT

The US dollar was under intense pressure during the period July 27 – August 2. During this period the dollar index suddenly lost about 2.5% of its value – a brutal move for the world’s reserve currency. Following some encouraging news out of the US economy such as personal income and spending and the ISM non-manufacturing index the dollar started a recovery which received a big boost from a very strong US employment report. The employment report was better-than-expected in [..]

US non-farm payrolls and earnings beat estimates; dollar jumps

Posted on August 5, 2016 at 3:04 pm GMT

It was another strong month for US jobs in July as non-farm payrolls beat estimates for a second month, underlining the view that the labor market remains solid despite a blip in May. Non-farm payrolls rose by 255k in July, sharply above estimates of 180k. In an additional boost, June’s original estimate of 287k was revised higher to 292k and May’s figure was revised back up by 13k. July’s jobs report was positive across the board with gains made in [..]

Asian Session – Dollar steadier but struggles to hold on to 101 yen

Posted on August 3, 2016 at 8:04 am GMT

The US dollar stabilized in Asian trading on Wednesday following another steep fall yesterday on growing doubts about the prospect of further rate increases by the Fed this year. The greenback hit a 3-week low of 100.67 yen yesterday but managed to rebound above the 101 level in today’s Asian session. The euro and the pound were also stuck near 3-week lows against the yen at 113.40 and 134.65 respectively. The Japanese currency continued to face upside pressure today due [..]

European Session – Dollar pares back losses but sterling weaker on PMI downgrade

Posted on August 1, 2016 at 2:50 pm GMT

Major currencies struggled for direction in lacklustre trading in today’s European session as the dollar recovered only modestly from last week’s drop, while the pound took a knock from weak PMI data. The US dollar managed to hold above 102 yen after plunging below the level on Friday following surprisingly weak US GDP data for the second quarter, which dampened the likelihood of a tightening in Fed policy this year. Comments from Fed policymakers provided only limited support to the [..]

Week Ahead – Pressure on BoE to cut rates; PMI data and US NFP also in focus

Posted on July 29, 2016 at 2:45 pm GMT

The Bank of England meets next week in a highly anticipated meeting where the Bank is expected to cut rates for the first time since 2009. The Reserve Bank of Australia also meets and will likely ease policy too. The latest PMI survey data for the Eurozone, UK, US and China will also be watched as investors look for signs of any negative impact on growth from Brexit, while the July non-farm payrolls report out of the US will for [..]

FX Daily Outlook| 28-07-16

Posted on July 28, 2016 at 8:52 am GMT

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Asian Session – Dollar slips despite upbeat Fed; Yen firms as markets await BoJ

Posted on July 28, 2016 at 7:59 am GMT

The Federal Reserve kept monetary policy unchanged yesterday as expected but delivered a slightly more upbeat view of the US economy. Members of the Federal Open Market Committee saw the risks to the economic outlook as having “diminished” since the June meeting in reference to the Brexit vote. However, the FOMC maintained its data-dependent policy, giving little indication to when the next rate hike would come. The dollar spiked up immediately after the Fed’s decision, hitting 106.04 yen, but traders [..]

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