All Articles Tagged - FOMC

Asian Session – Aussie falls as soft inflation increases chance of RBA rate cut, focus turns to Fed

Posted on October 28, 2015 at 8:26 am GMT

The Australian dollar was one of the worst performing currencies in Wednesday’s Asian session after it plunged following data showing the weakest pace of inflation in Australia in three years. Headline CPI came in at 0.5% quarter-on-quarter in the three months to September compared to 0.7% in the prior quarter. This missed forecasts of a 0.7% number. Meanwhile, compared to a year earlier, CPI rose 1.5%, below expectations for a 1.7% rise. The Australian dollar fell sharply against the US [..]

Week Ahead – All eyes on FOMC, BoJ and RBNZ meetings but Q3 GDP also in focus

Posted on October 23, 2015 at 12:27 pm GMT

The coming week is set to be a busy one both in terms of data and for central bank activity. The Fed will hold its October FOMC meeting, while the Bank of Japan and Reserve Bank of New Zealand will also meet. The key indicators to watch for will be US and UK third quarter GDP and Eurozone flash CPI. Starting the week are the German IFO survey for business confidence and expectations. It will be interesting to see how [..]

Mixed signals from Fed leaves year end rate rise in the balance

Posted on October 21, 2015 at 12:43 pm GMT

As Fed policymakers round up their speeches ahead of next week’s FOMC meeting, doubts remain whether the Federal Reserve will raise interest rates by the year end. After spending much of the year stressing the Fed’s data dependency on the timing of any decision to increase rates, Fed policymakers have yet to convince markets that the US is ready for lift-off. In the summer, a tightening labor market had pointed to a September increase in the Fed’s funds rate, but [..]

Dollar firms on stronger-than-expected inflation figures

Posted on October 15, 2015 at 1:59 pm GMT

US consumer prices were unchanged in September on an annual basis as CPI fell to 0.0% from 0.2% the prior month. This was slightly above estimates that consumer prices would fall by -0.1%. On a month-on-month basis, CPI fell for the second month in-a-row to -0.2% from -0.1%, in-line with estimates. The core rate, which excludes food and energy, was also stronger-than-expected. Core CPI edged up to 0.2% month-on-month, above estimates of that it would rise by 0.1%. The 12-month [..]

European Session – FOMC minutes boost risk, weaken dollar, oil above $50

Posted on October 9, 2015 at 2:36 pm GMT

The dollar pushed lower against most major currencies today in reaction to the minutes of the Federal Reserve’s latest policy meeting. The FOMC minutes released on Thursday suggested the US central bank was in no hurry to raise interest rates after its “on hold” decision at last month’s meeting. This left investors to push back expectations of a rate hike until next year. Fed policymakers were still watching US inflation rates and the impact of slower global growth when considering [..]

Asian Session – Dollar comes under pressure on dovish Fed minutes

Posted on October 9, 2015 at 7:47 am GMT

The dollar came under renewed pressure after the FOMC minutes revealed concern about the impact on US growth from the slowdown in China and the turbulence in financial markets. Most analysts now think that it is unlikely the Fed will raise rates in 2015. The FOMC anticipate that the recent global developments pose further downside risks to inflation in the near term compared with their previous forecast. The slowdown in China and the potential spillover to other economies could depress [..]

European Session – ECB, BoE drive euro, pound lower, FOMC minutes in focus

Posted on October 8, 2015 at 2:02 pm GMT

Central banks were in focus today, beginning with the Bank of England policy meeting, the European Central Bank’s “account” of the last policy meeting and finally the FOMC minutes later. The euro was strong in the early part of the European session against the dollar and rose above the key 1.13 level for the first time in a week. A session high of 1.1314 was reached even though data showed Germany’s trade surplus narrowed sharply in August to 19.6 billion [..]

Dollar boosted after Fed policymakers raise prospects of 2015 rate increase

Posted on September 22, 2015 at 10:57 am GMT

After last week’s much-anticipated FOMC meeting struck a surprisingly more dovish tone than markets had expected, Fed officials have since been signalling that the decision to keep rates unchanged was a close call and a rate hike later this year remains a likelihood. The dollar index, which measures the value of the dollar against a basket of major currencies, fell to a 3½-week low following the FOMC statement last Thursday. The statement cited the downward pressure on inflation in the [..]

Dollar drops on dovish Fed, rates kept unchanged

Posted on September 17, 2015 at 7:27 pm GMT

The Federal Reserve left interest rates unchanged at record lows amid increasing uncertainty in the global economy and stubbornly low interest rates in the US. The Fed statement was quite dovish as it lowered its long-term outlook for the US economy. Its forecasts for GDP growth in 2016 and 2017 were downgraded, while the Fed’s Funds Rate forecasts were also lowered to 3.5% compared to 3.75% at the previous policy meeting. Despite a resilient US recovery, the Federal Reserve Open [..]

FX Daily Outlook

Posted on September 17, 2015 at 9:02 am GMT

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