All Articles Tagged - FOMC

Asian Session – Dollar falls on lower growth outlook and slower pace of rate increases

Posted on June 18, 2015 at 7:22 am GMT

The dollar fell on Wednesday after the publication of the FOMC statement and the Fed’s economic projections, which showed a reduction in the growth outlook for 2015-2017. The lower growth forecasts signalled a slower pace of increase in the interest rates than anticipated. However, markets were somewhat disappointed that the FOMC statement did not provide a clearer timeline of when interest rates are likely to go up. The statement said that economic growth has been expanding moderately but the Fed [..]

Fed on track to raise rates but cut in growth outlook signals slower rise

Posted on June 17, 2015 at 8:17 pm GMT

The Federal Reserve’s Federal Open Market Committee concluded its two-day meeting today, keeping policy unchanged as expected. Markets have been keenly waiting for the details of the FOMC statement as slower than expected economic growth since the start of the year has pushed back initial expectations that the Fed would begin tightening monetary policy as early as June. This has led to increased speculation over the timing and the pace of any interest rate rise with the Fed acknowledging that [..]

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 [..]

European Session – Dollar flat ahead of FOMC, euro weighed by Greece uncertainty and Eurogroup

Posted on June 16, 2015 at 2:40 pm GMT

Today market price action was quite choppy, mainly because of a risk off tone due to uncertainty over Greece and a lack of any concrete news. There were rumours of a delay in the IMF payment which were later denied. Meanwhile the Greek Finance Minister said that no new concessions will be made and no new reforms will be put forward to the Eurogroup meeting on Thursday. Aside from headlines on Greece, the only important data out of the Eurozone [..]

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 [..]

FX Daily Outlook

Posted on May 21, 2015 at 8:08 am GMT

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Asian Session – US dollar maintains gains as Fed upbeat on future growth prospects

Posted on May 21, 2015 at 7:38 am GMT

The US dollar was holding on to the gains of the latest few sessions – particularly against the euro and the yen, as the Fed was relatively upbeat about the US economy while almost ruling out a June rate hike. The dollar was trying to push the euro below 1.11, while the greenback climbed above 121 against the yen (a new 2-month high was made at 121.47). Euro / dollar rose above 1.11 at 1.1109 after upbeat French PMI numbers, [..]

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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