All Articles Tagged - FOMC

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 [..]

European Session – Eurozone data lift euro to week high, sterling down ahead of BoE minutes

Posted on March 17, 2015 at 2:46 pm GMT

The dollar was broadly weaker as investors remained cautious ahead of the FOMC policy decision tomorrow. The euro rose for a second day against the greenback to a new weekly high of 1.0650. Lending support to the single currency was Eurozone economic data. Employment grew by 0.1% in the Eurozone in the last quarter of 2014, while economic sentiment in the region remained high according to the ZEW survey. The German ZEW though was lower-than-expected. There was also an upside [..]

Asian Session – Euro off 12-year lows, dollar weak ahead of FOMC

Posted on March 17, 2015 at 7:32 am GMT

The market’s reaction to the Bank of Japan announcing it stuck to its annual asset purchases of 80 trillion yen was limited. The focus was mainly on the BOJ Governor Haruhiko Kuroda’s news conference. Kuroda’s initial comments lifted the yen as he said that he doesn’t see financial markets overheating doesn’t see any liquidity problem in the JGB market. He sees real wage growth to expand from April. But then Kuroda mentioned that negative CPI rates are possible, and this [..]

Asian Session – Dollar steady as Fed rate decision in focus this week

Posted on March 16, 2015 at 7:51 am GMT

Currency markets are gearing up to the main event this week – the Federal Reserve’s interest rate decision which is due on Wednesday following a two-day meeting beginning on Tuesday by the FOMC. Investors’ main focus will be on whether the Fed will drop the word “patient” from its statement. Such a move would be interpreted as the Fed beginning to hike rates by June this year. As a result of Fed rate hike expectations and the diverging monetary policies [..]

Forex News – Week Ahead – Fed and SNB rate decisions are key events

Posted on March 13, 2015 at 1:55 pm GMT

The Fed’s latest interest rate decision will be the highlight of next week. This key event is scheduled for Wednesday when the Federal Open Market Committee (FOMC) will hold a policy meeting and make the rate announcement after. Recently speculation has grown that the Fed will begin to hike rates by the middle of this year, based on improving economic data that highlight the strengthening US economy. The Federal funds rate has been at record lows close to zero since [..]

FX Daily Outlook

Posted on February 19, 2015 at 8:46 am GMT

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Asian Session – Japanese Yen retains gains vs dollar after strong trade data

Posted on February 19, 2015 at 8:14 am GMT

The yen managed to keep the dollar below the 119 level, after trade data for January showed both exports expanding much more than expected as well as imports contracting. Therefore the country’s trade deficit was about 500 billion yen narrower than anticipated by forecasts. This was a further indication that the weakness in the yen is helping the country’s trade performance but the drop in imports – although helpful for economic growth – also shows problems in domestic demand. The [..]

European Session – Pound outperforms on strong UK jobs data

Posted on February 18, 2015 at 3:07 pm GMT

The best performing major currency was the British pound which gained about 0.5% against the dollar on the day so far. Strong UK employment data and earnings numbers helped lift sterling to the highest level since January 2nd, topping at 1.5439. The Bank of England minutes also provided few surprises. Average weekly earnings, including bonuses, rose 2.1% in annual terms in the three months to December, beating forecasts for a 1.7% increase. This compared to a 1.8% increase in the [..]

European Session – Euro holds steady as focus turns to Eurozone CPI, dollar supported by lower jobless claims

Posted on January 29, 2015 at 3:28 pm GMT

The FOMC statement from Wednesday still dominated markets today, keeping the dollar firm and the euro and sterling in their recent ranges. The Fed’s message supports the upward dollar trend as it signaled that the earliest it would increase interest rates would be in June although there was a caveat – policy is data dependent and international developments are part of their assessment. The euro was steady, managing to pop up into the 1.13 handle to reach a high of [..]

European Session – Focus on FOMC keeps dollar soft

Posted on January 28, 2015 at 2:58 pm GMT

Currency markets were relatively calm as many investors preferred to wait on the sidelines ahead of an important risk event today – the Federal Reserve issues its statement later in the US session and will be the main highlight of the day. As a result, the dollar retained a softer tone going into the FOMC announcement, allowing the euro to hold steady in the 1.13 handle after bouncing from an 11-year low of 1.1096 on Monday. The market mostly ignored [..]

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