All Articles Tagged - FOMC

Week Ahead – Fed and BoJ to set the tone; RBNZ and preliminary GPD also eyed

Posted on April 22, 2016 at 12:44 pm GMT

It will be a busy seven days in the coming week as the Fed and the Bank of Japan hold their respective monetary policy meetings. The US and Japan will also dominate the economic calendar with some key indicators expected next week, while UK GDP, Eurozone flash inflation and the RBNZ’s policy meeting will also be watched. Eurozone inflation in focus post ECB German Ifo data will start the week on Monday and after this week’s disappointing Markit PMI surveys, [..]

Asian Session – Euro reverses post ECB gains; Yen slides on BoJ speculation

Posted on April 22, 2016 at 8:05 am GMT

The yen slid against major currencies in Friday’s Asian session after reports emerged that the Bank of Japan may broaden its use of negative interest rates when it meets next week. Bloomberg reported today that Bank of Japan policymakers are considering applying negative rates on the Bank’s lending facilities which would in effect mean paying commercial banks to lend to the public. The news sent the yen tumbling in currency markets and boosted shares in Tokyo. The US dollar jumped [..]

Asian Session – Dollar falls to 6-month low after FOMC minutes

Posted on April 7, 2016 at 8:03 am GMT

The minutes of the Fed’s March policy meeting showed signs of a split emerging within the FOMC as two committee members argued for a rate hike. However, only one member voted for a rate increase in March, while the majority of participants preferred to take a “cautious approach” to raising rates. Concerns about the prospects for global growth, disinflationary pressures from overseas and uncertainty about the Fed’s own forecasts for the US economy were cited as the main reasons for [..]

European Session – Dollar falls to fresh 17-month lows versus yen as markets eye FOMC minutes

Posted on April 6, 2016 at 3:04 pm GMT

Sterling was one of the worst performing major currencies today as Brexit concerns weigh, while the yen continued to outperform due to risk aversion. The focus was also on the dollar, as investors await the FOMC minutes due at 2 pm ET. Attention will also be paid to Cleveland Fed President Loretta Mester who is scheduled to speak about the economic outlook later today. The minutes of the March 15-16 Fed policy meeting are expected to be dovish and will [..]

Cautious Yellen stands ground as Fed hawks circle

Posted on March 30, 2016 at 11:17 am GMT

The Federal Reserve did little to dispel confusion over US monetary policy as Fed Chair Janet Yellen yesterday stood firm with her dovish stance in the face of a rising number of hawkish voices from within the FOMC. Speaking at the Economics Club of New York, Yellen reiterated the need for caution despite several Fed officials last week expressing their confidence that the US economy is strong enough to withstand at least two more rate hikes this year. In the [..]

After a dovish FOMC, Fed speakers turn unexpectedly hawkish

Posted on March 23, 2016 at 12:42 pm GMT

The US Federal Reserve surprised markets at its FOMC meeting on March 16 when it took a much more dovish stance than what most traders had been expecting. Although a downgrade of the Fed’s projections on the US economy and its dot plot guidance of the fed funds rate had been expected, markets were taken aback by the overcautious tone of the FOMC statement. In the Fed Chair’s press conference, Janet Yellen downplayed the significance of the recent spike in [..]

FX Daily Outlook| 17-03-16

Posted on March 17, 2016 at 9:31 am GMT

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Asian Session – Dollar slips to 1-month lows after FOMC; aussie and kiwi up on strong data

Posted on March 17, 2016 at 9:00 am GMT

The US dollar extended its losses into Thursday to slip to one-month lows against a basket of currencies. The Federal Reserve yesterday lowered its projections on US GDP growth and its dot plot guidance on expected interest rate rises. The FOMC’s outlook is now in line with market expectations of just two rate increases this year. Analysts had been expecting the Fed to lower its projections but were surprised at the apparent lack of concern for the latest spike in [..]

Dovish Fed lowers rate rise expectations; dollar drops

Posted on March 16, 2016 at 9:05 pm GMT

The Federal Open Market Committee concluded its two-day policy meeting on Wednesday and as expected, kept the federal funds rate unchanged for the second meeting at between 0.25%-0.50%. Accompanying the March meeting statement were the FOMC’s latest economic projections, including forecasts for the fed funds rate over the next three years. In what turned out to be a more dovish-than-expected outlook by the Fed, the latest projections expect GDP growth to be slightly weaker in 2016 and 2017 but unchanged for [..]

European Session – Dollar gains on upbeat US inflation report, all eyes now on FOMC

Posted on March 16, 2016 at 3:34 pm GMT

UK data dominated the European session but the market’s focus now shifts to the FOMC meeting later today to see if the Fed may shed some light on the timing of future interest rate increases. While no rate hike is expected at today’s meeting, investors will look for any clues on whether the next hike will come at least in June. The odds of more than one Fed rate hike this year are rising as US economic data have improved [..]

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