All Articles Tagged - FOMC

Asian Session – Fed minutes cause dollar to drop as market pushes back expected rate hikes

Posted on October 9, 2014 at 6:46 am GMT

The US dollar dropped versus other major currencies following Federal Reserve minutes that were interpreted as dovish. Fed board members seemed to fret about the weakening global economic environment and the impact it would have on US growth prospects. Fed governors were also cautious on the negative effect the stronger US dollar would have on exports and on inflation. These considerations seemed to play a key role in the committee’s decision to keep the phrase that rates would stay low [..]

European Session – All eyes on FOMC, dollar holds steady

Posted on October 8, 2014 at 2:08 pm GMT

The lack of major data releases in the European session kept price action amongst most major currency pairs sideways. Investors were reluctant to enter new positions ahead of the FOMC minutes which are due for release at 1800 GMT on Wednesday. Meanwhile, market sentiment was also quite damp after the International Monetary Fund’s cut its global growth forecasts in an announcement on Tuesday. US Treasury yields have fallen and removed some of the steam out of the greenback, whose recent [..]

European Session – Dollar falls after soft US inflation, ahead of FOMC

Posted on September 17, 2014 at 1:21 pm GMT

The US dollar was broadly weaker today ahead of expectations that the Federal Reserve would maintain low rates late in the day. The greenback was weakened further after disappointing US CPI data which fell more-than-expected in August for the first time in over a year. The dollar dropped from an intra-day high of 107.34 against the yen to 107.13 after the data showed US headline inflation dropped 0.2% from a prior increase of 0.1%. Bearish sentiment in the dollar will [..]

European Session – Euro steady after German ZEW, markets look to FOMC

Posted on September 16, 2014 at 1:40 pm GMT

The currency markets were relatively quiet today as focus was shifting towards upcoming event risk later this week. Investors are reluctant to take on new positions ahead of the FOMC announcement on Wednesday and Scotland’s referendum for independence on Thursday. Most major currency pairs traded within recent ranges, with little movement despite some data releases today. The euro oscillated between 1.2921 and 1.2965, with little impact from the release of the German ZEW survey showing investors’ confidence dropped for a [..]

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 [..]

Asian Session – Dollar maintains strength following Fed minutes

Posted on August 21, 2014 at 7:11 am GMT

The Federal Reserve minutes of the July policy meeting which were released on Wednesday gave a more hawkish-sounding tone and helped push the dollar higher. The minutes showed the Federal Reserve Open Market Committee (FOMC) were more willing to raise interest rates sooner due to a surprisingly stronger recovery in the US labour market. Markets reacted positively to the FOMC minutes and bought the dollar, which was already firm following a series of upbeat US housing data this week. The [..]

Asian Session – US dollar holds gains after strong GDP data, dovish Fed

Posted on July 31, 2014 at 6:37 am GMT

The US dollar continued to climb higher following an impressive set of GDP numbers, but its gains were held back by the Federal Reserve’s statement. The US dollar was particularly strong against the Japanese yen, as it rose to 102.72 from around 102.11 the previous day. The Australian dollar was also a victim of dollar strength, as it fell to 0.9322, after briefly touching 0.9301 following weaker-than-expected building approvals in Australia during June. Sterling and the euro also posted small [..]

Forex News – Fed signals end to QE this year

Posted on July 10, 2014 at 11:23 am GMT

The Federal Reserve released minutes from its June 17-18 policy meeting on Wednesday, disappointing markets which were expecting are more hawkish tone and more details about when the Fed would begin to raise interest rates. The minutes indicated that the Fed will begin ending quantitative easing sooner than market expectations. October appears to be the most likely time period to end the monthly bond-buying program. At its June meeting the FOMC (Federal Open Market Committee) voted to reduce the program [..]

Asian Session – Dollar under pressure after Fed minutes

Posted on July 10, 2014 at 6:16 am GMT

The dollar was broadly weaker after the FOMC minutes were released on Wednesday. The minutes of the June 17-18 meeting were not as hawkish as some would have expected and merely indicated that the Fed’s stimulus program would end in October, with no indication of when interest rates in the US would rise. The dollar dipped to 101.48 near a one-week low of 101.43 before bouncing back to 101.60. The euro rose to a one-week high against the broadly weaker [..]

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