All Articles Tagged - Fed

Forex News – Fed more dovish on US economy changes rate hike expectations

Posted on March 19, 2015 at 11:17 am GMT

(Source: Thomson Reuters: 10-Year US Treasury Yields) The Federal Reserve gave a clear indication to markets on Wednesday that it is not a matter of “if” but “when” it would begin raising interest rates. The word “patient” was removed from the statement from the Federal Open Market Committee (FOMC) but this did not meant the US dollar reacted positively to this news. In fact the greenback plunged during the release of the statement as well as during Fed Chair Janet [..]

FX Daily Outlook

Posted on March 19, 2015 at 8:56 am GMT

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Asian Session – US dollar bounces back following post-Fed crash

Posted on March 19, 2015 at 8:00 am GMT

The US dollar rebounded somewhat from its post-Yellen crash, as the Fed appeared more dovish than expected following its 2-day meeting. The euro briefly climbed above the 1.10 level before coming back to 1.0711 in volatile trading. It was the biggest single-day jump in the euro / dollar exchange rate for the past 15 years. The dollar was also briefly pushed below 120 against the yen before rebounding to around 120.65. The outcome of the Fed’s meeting and the market [..]

FX Daily Outlook

Posted on February 26, 2015 at 9:00 am GMT

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Forex News – Janet Yellen signals Fed to hold off rate hikes for now

Posted on February 25, 2015 at 10:21 am GMT

The semi-annual testimony of Federal Reserve Chair Janet Yellen on monetary policy before Congress was roughly in line with expectations. Yellen was cautious not to create expectations that the Fed was preparing to hike interest rates imminently but at the same time she wanted to signal that the Fed was still moving towards some sort of policy normalization. This was a balancing act that Yellen appeared to be managing relatively well. The Fed is also still trying to transition from [..]

Asian Session – Yellen limits dollar upside; aussie gains on Chinese PMI

Posted on February 25, 2015 at 8:16 am GMT

The testimony by Federal Reserve Chair Janet Yellen was the main news item for foreign exchange markets, as it put a lid on the dollar rally by bringing down Treasury bond yields. The Fed Chair indicated that there was no pre-set schedule for interest rate increases and that for the Fed to start increasing rates, it needed to be convinced that inflation was going to head towards its 2% target. In December US inflation was at 0.8%, although lower fuel [..]

Forex News – Federal Reserve apprehensive of raising rates too quickly

Posted on February 19, 2015 at 1:40 pm GMT

The minutes of the Federal Reserve January 27/28 meeting were released yesterday and overall they showed a committee with some concerns about the economic outlook and whether US interest rates can rise soon. One of the main takeaway points from the minutes is that most Fed members prefer to wait in raising interest rates – perhaps risking possible negative side effects such as inflation or asset bubbles – rather than raising rates too quickly which could hurt the US economic [..]

Forex News – Federal Reserve is still “patient” with rates; weighs jobs, growth and inflation ahead

Posted on January 29, 2015 at 1:22 pm GMT

The Federal Reserve statement, which was released following its 2-day meeting that ended on Wednesday, contained no big surprises. Still, there were some shifts in the Fed’s language which do provide clues as to what happens next. The most important point was perhaps that the Fed has upgraded its view of the US economic expansion to “solid” from “moderate”. It also upgraded its view of job gains, describing them as “strong” instead of “solid” in the previous statement. The Fed [..]

European Session – UK retail sales boost sterling, dollar higher on US jobs data

Posted on December 18, 2014 at 2:48 pm GMT

The dollar extended its rally against the yen today after upbeat US initial jobless claims data that indicate the labour market continues to strengthen. This pleased the markets because any jobs-related data is closely watched by the Federal Reserve as the timing of the first rate hike is data-dependent. On Wednesday, Fed Chair Janet Yellen reiterated this while talking at a press conference following the FOMC statement. The dollar surged after Yellen sent signals to the markets that the Fed [..]

Forex News – Yellen puts risk appetite back, dollar rises

Posted on December 18, 2014 at 11:13 am GMT

Federal Reserve Chair Janet Yellen put risk appetite back in the markets after her hawkish comments made on Wednesday following the conclusion of a 2-day Federal Reserve policy meeting. Yellen said that as progress in achieving maximum employment and 2% inflation continues, at some point it will become appropriate to begin reducing policy accommodation. However, the Fed is eyeing those improvements with caution and it isn’t yet convinced it can start to pull away its stimulus of record-low interest rates. [..]

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