All Articles Tagged - Fed

Asian Session – Dollar steady ahead of jobs report; BoJ maintains policy and outlook

Posted on August 7, 2015 at 8:08 am GMT

The Bank of Japan kept its monetary policy unchanged on Friday at the end of its two-day meeting as was expected. The Bank said that Japan’s economy continues to recover moderately and its quantitative and qualitative monetary easing program has been exerting its intended effects. But with inflation expected to remain near 0% in the near term, the Bank said it will continue with its current policy until price increases reach its 2% target. Economic growth is forecast to have [..]

European Session – Pound down on less hawkish BoE; euro and dollar broadly steady

Posted on August 6, 2015 at 2:53 pm GMT

The Bank of England’s ‘Super Thursday’ got underway on Thursday as the UK central bank released its quarterly inflation report, MPC decision and meeting minutes simultaneously for the first time. Following recent hawkish comments from BoE governor Mark Carney that the decision to raise interest rates would come into a ‘sharper relief’ by the end of the year, markets had widely interpreted this as a signal that the Bank is getting ready to hike rates. However, in today’s press conference, [..]

Asian Session – Pound steady ahead of BoE’s ‘Super Thursday’; dollar off highs

Posted on August 6, 2015 at 7:57 am GMT

The US dollar was slightly off its highs from Wednesday’s near 4-month highs against a basket of currencies. Comments from Fed policymakers Jerome Powell and Dennis Lockhart gave conflicting signals on the possibility of a September rate increase. Lockhart sounded more hawkish, saying the economy was ‘in good shape’ and that September would be an appropriate time for a move. But Powell reiterated the Fed’s data dependency stance saying no decision has been made. The dollar fluctuated during the course [..]

European Session – Euro back above 1.09 as dollar seesaws on Fed comments and mixed data

Posted on August 5, 2015 at 2:05 pm GMT

After having a strong start to the day on the back of hawkish comments from Atlanta Fed President Dennis Lockhart, the dollar went into sharp reverse on contradicting remarks from another Fed official. On Tuesday, Lockhart had raised expectations of a September rate rise by saying that “the economy is ready and it is an appropriate time to make a change” with regards to the September meeting. But on Wednesday, Fed governor Jerome Powell said that “nothing has been decided” [..]

FX Daily Outlook

Posted on August 5, 2015 at 9:19 am GMT

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Asian Session – Dollar gains on Fed official comments supporting September rate rise

Posted on August 5, 2015 at 8:20 am GMT

The dollar index rose back above 98 to near April highs in late US trading on Tuesday. The US currency was boosted by comments from Atlanta Fed President Dennis Lockhart who said in an interview for the Wall Street Journal that it would require significant deterioration of the US economy to convince him not to hike rates in September. The dollar had started Tuesday on a softer note and investors were unconvinced from better-than-expected factory orders on signs of underlying [..]

Asian Session – Dollar mixed post Fed and GDP but euro moves higher

Posted on July 31, 2015 at 7:58 am GMT

The dollar rally fizzled out during Thursday’s US session, after making strong gains from the FOMC statement and yesterday’s GDP data. Expectations for a September rate rise remain strong and employment and inflation data until the Fed’s next meeting will be closely watched by the markets. Second quarter US growth disappointed slightly as the initial reading of 2.3% was below consensus estimates of 2.6%. But most analysts think that the tightening labor market will spur the US central bank to [..]

FX Daily Outlook

Posted on July 30, 2015 at 9:14 am GMT

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Asian session – FOMC statement delivers no surprises but dollar still up while euro falters

Posted on July 30, 2015 at 7:58 am GMT

The dollar extended its gains from Wednesday’s US session in today’s Asian trading as the Fed’s positive assessment of the US economy suggested that a September rate rise remains a strong possibility despite the lack of clear signals. In its statement, the FOMC said that the labor market is ‘nearly balanced’ but that inflation continues to run below the target rate. This could indicate that the Fed would be more comfortable if inflation was closer to its 2% objective before [..]

Fed upbeat on jobs but September move uncertain due to low inflation

Posted on July 29, 2015 at 8:03 pm GMT

The Federal Open Market Committee (FOMC) concluded its two-day meeting on Wednesday by keeping its policy unchanged. Markets were not expecting any changes but were hoping the Fed would provide stronger signals on the possible timing of an interest rate increase. With July being the last meeting before September, which is widely tipped as the most likely date for a rate move, investors were left disappointed on the lack of clear signals by the FOMC. While the Committee sounded more [..]

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