All Articles Tagged - Fed

European Session – Sterling outperforms after strong UK jobs report, all eyes on FOMC

Posted on June 17, 2015 at 2:24 pm GMT

Sterling continued to outperform today after it rallied on a UK employment report that showed wage growth climbed to 6-year highs in April. Average weekly earnings growth (excluding bonuses) beat expectations and jumped 2.7% y/y versus 2.5% forecast. The strong data will likely bring forward the expectations of the first rate hike by the Bank of England. Also released out of the UK were the Bank of England minutes of the latest policy meeting which leaned towards a more hawkish [..]

FX Daily Outlook

Posted on June 17, 2015 at 7:54 am GMT

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Asian Session – Markets nervous ahead of Fed meeting and worsening Greek crisis

Posted on June 17, 2015 at 7:46 am GMT

Asian shares started the session lower hitting three-month lows but managed to mostly reverse earlier losses with the exception of Japan. The Nikkei 225 index was down by 0.19% after disappointing trade figures showing exports rose by only 2.4% in May, against estimates that they would grow by 3%. Investors were generally wary with both the Fed meeting later today and the Greek crisis occupying the markets. There were no signs that the current impasse between Greece and its creditors [..]

Dollar unmoved from weak US industrial production data

Posted on June 15, 2015 at 2:49 pm GMT

Weaker-than-expected industrial production figures for the US had little impact on the dollar as the markets are more focused on Wednesday’s rate decision by the Fed and the escalating stand-off between Greece and its creditors. Nevertheless, as the Fed moves into a period of data dependency for the timing of its expected rate rise, it will be watching closely all indicators to assess the speed at which economic growth rebounds from the first quarter weakness. Industrial production in May declined [..]

Week Ahead – Inflation data for US, UK and Eurozone to set the tone but all eyes on Fed Meeting

Posted on June 12, 2015 at 12:10 pm GMT

The week ahead is set to be a significant one for monetary policy as May inflation figures are published for the US, UK, Eurozone and Canada. Central bank decisions for Switzerland, the US and Japan will be closely watched, especially the Fed’s June meeting. The US will start the week with industrial production figures out on Monday. They are expected to show industrial production expanded by a monthly 0.2% in May, versus -0.3% in April, while the Empire State Manufacturing [..]

European Session – Euro hurt by Greek debt worries and Spanish elections but dollar extends gains

Posted on May 25, 2015 at 2:09 pm GMT

European trading was thin today as major markets such as the UK, Germany and Switzerland were closed for a bank holiday. But the euro could not escape attention as worries over Greece and the outcome of Spanish regional elections added uncertainty for the single currency, pushing European shares lower. Comments over the weekend from Greece’s interior minister that the government will not be able to meet the June debt repayments to the IMF totalling 1.6 billion euros unless it reaches [..]

Fed Chair’s promise for interest rate hike boosts dollar

Posted on May 25, 2015 at 9:28 am GMT

The US dollar received a boost on Friday as Fed Chair Janet Yellen said she expects rates will start to head higher “at some point this year”. The fact that the Fed intends to increase interest rates – given of course that the US economy maintains its dynamism – was a boost to the US dollar which had been troubled by the prospect that rates could stay near zero for this year as well. US economic data had mostly underwhelmed [..]

Dollar jumps after US core inflation rises more than expected

Posted on May 22, 2015 at 2:29 pm GMT

US April inflation data out today triggered fears in the markets that inflation in the United States will rise closer to the Fed’s 2% target sooner than anticipated, pushing forward expectations of a rate rise. Consumer prices in April rose by 0.1% on the month from March, in line with forecasts, giving a year-on-year rate of -0.2%, which is lower than March’s -0.1%. However, the all-important core CPI rate, which excludes the volatile food and energy prices from the index [..]

Fed Minutes Reveal June Rate Hike Unlikely

Posted on May 21, 2015 at 8:56 am GMT

The Federal Reserve published the minutes of its April FOMC meeting on Wednesday, which signalled that a June rate hike was unlikely. Markets had already discounted the low likelihood of a June increase as first quarter GDP growth was much weaker than expected and recent data were pointing to a soft start to the second quarter. The minutes showed that few of the FOMC participants expected that there would be sufficient improvement in the economic outlook by the time of [..]

European Session – Sterling rallies on BoE minutes, dollar stronger ahead of FOMC

Posted on May 20, 2015 at 2:08 pm GMT

Sterling was the main focus of the currency markets in the early European session as it surged following the publication of the Bank of England minutes of the May policy meeting. The minutes were more hawkish-than-expected. Even though all nine Monetary Policy Committee (MPC) members voted to leave rates unchanged, two policymakers were actually inclined to raising rates versus keeping them on hold and felt the decision was” finely balanced”. The news helped the pound claw back losses made after [..]

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