All Articles Tagged - Fed

Asian Session – US dollar extends post-FOMC gains

Posted on December 18, 2014 at 7:52 am GMT

The US dollar rallied strongly after the Fed expressed confidence in the country’s economic rebound. The accompanying policy statement said the Fed would be “patient” in removing policy accommodation and loose monetary policy would likely remain in place until 2017, according to the Fed Chair. When asked to specify what “patience” meant, Janet Yellen said that rates would remain at zero at least for the next couple of meetings. That would put the earliest date for a rate hike at [..]

European Session – All eyes on FOMC as dollar gains

Posted on December 17, 2014 at 3:01 pm GMT

The US dollar was broadly stronger leading into today’s Federal Reserve policy meeting and US inflation release. There are expectations for a shift to a more hawkish tone as there is speculation that the Fed will tweak its statement and remove its ”considerable time” phrase, with reference to interest rates. Market chatter says the Fed will replace this phrase with a different term that would show some indication that the central bank is gearing up to begin hiking rates in [..]

Asian Session – Dollar / yen recovers ahead of FOMC

Posted on December 17, 2014 at 8:16 am GMT

The currency market was waiting for the outcome of the 2-day Federal Reserve meeting today and the US dollar managed to post some gains. There was increased turbulence in forex markets lately as a result of falling crude oil prices and the collapse of the Russian ruble, which created a risk aversion atmosphere. Dollar / yen climbed to 117.28 during the Asian session, after dropping to as low as 116.30 in early trading. Dollar / yen dropped to as low [..]

Forex News – Dollar firms as Fed ends QE, sees improving US labor market

Posted on October 30, 2014 at 11:05 am GMT

The Federal Reserve concluded its 2-day policy meeting on Wednesday with a surprisingly upbeat statement by the FOMC (Federal Open Market Committee). The US central bank announced that its stimulus program of bond purchases will stop at the end of October, as was widely expected by the markets. What was not expected was the more hawkish tone in the statement as it showed that the Fed had more confidence in the US economy and did not seem too bothered about [..]

Forex News – Fed reluctant to raise interest rates if global slowdown intensifies

Posted on October 13, 2014 at 12:35 pm GMT

An array of Fed speakers in Washington for the IMF / World Bank meetings over the weekend have reinforced the argument that the Fed should be more cautious in raising interest rates and possibly delay any rate hike because of slower global growth and the disinflationary effect of a strong dollar. The most preeminent speaker was the Federal Reserve Vice President Stanley Fischer, who spoke at an IMF event on Saturday, October 11th. The important quote that the media used [..]

Forex News – Fed mixed message boosts dollar to new highs vs yen, euro

Posted on September 18, 2014 at 11:45 am GMT

The Federal Reserve’s Open Market Committee meeting on September 16 / 17 resulted in few major changes, revisions or fresh policy announcements. Yet, dollar bulls saw the meeting’s outcomes as another step towards eventual policy tightening and a confirmation that US monetary policy will significantly diverge from that of other major central banks in the next 18 months. First of all, the committee decided to taper the Quantitative Easing program by an additional 10 billion dollars to 15 billion dollars. [..]

Asian Session – Dollar rallies boosted by Fed’s mixed message

Posted on September 18, 2014 at 6:40 am GMT

The US dollar notched up additional significant gains – particularly against the yen – during today’s Asian session as investors digested the outcome of the all-important Federal Reserve meeting the previous day. The dollar made a new 6-year record against the yen as it climbed to as high as 108.85 and euro / dollar fell to a new 14-month low of 1.2834. The euro later rebounded to 1.2870, as in contrast to the yen, it is showing more resilience against [..]

Forex News – Fed paper suggests underestimation of pace and level of future rate hikes

Posted on September 9, 2014 at 12:40 pm GMT

News that a research paper from the Federal Reserve Bank of San Francisco found that markets and the public seem to have lower expectations with respect to interest rate increases compared to the Fed Board members themselves, helped the dollar to climb against its major counterparts. The research utilized data from interest rate futures, from economist surveys and other market data and this was set against the quarterly interest rate outlooks of the FOMC participants. According to the paper, while [..]

European Session – US data buoy dollar, focus turns to Yellen at Jackson Hole

Posted on August 21, 2014 at 2:43 pm GMT

The euro hovered close to an 11-month low of 1.3241 against the dollar. Further losses were paused after the release of better-than-expected German PMI, which lent some support to the euro. The composite German PMI was strong at 54.9 with strength in the service sector and a stronger-than-expected manufacturing PMI at 52 was very encouraging. Also Eurozone PMIs helped to stabilize the euro around 1.3270. Sterling slid to a low of 1.6567 after today’s UK retail sales numbers were mixed [..]

Forex News – Dollar rallies as Fed talks of exit-strategy

Posted on August 21, 2014 at 8:57 am GMT

The markets reacted positively to the Federal Reserve’s more hawkish tone regarding interest rates. The July policy meeting minutes released on Wednesday showed that the Federal Open Market Committee came closer to exiting the current monetary policy. The minutes from the central bank’s July 29-30 meeting revealed that many FOMC policy makers were uncomfortable with leaving rates low for an extended period of time and many favoured raising rates sooner than previously anticipated. Their views were based on the fact [..]

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