All Articles Tagged - FOMC

Fed signals one rate hike in 2016 but dollar comes under pressure

Posted on September 21, 2016 at 8:46 pm GMT

The Federal Reserve decided to leave the federal funds rate unchanged in a range of 0.25%-0.50% at the end of its two-day meeting today in what was the most divided vote since December 2014. Three members of the FOMC dissented in the September meeting with Esther George, Loretta Mester and Eric Rosengren all voting to raise rates by 0.25%. This signalled that the Fed is getting closer to raising rates again, having stood pat since last December, when it tightened monetary [..]

Asian Session – Nervousness ahead of BoJ and Fed keeping markets subdued

Posted on September 20, 2016 at 5:36 am GMT

Markets were subdued as caution set in ahead of the highly-anticipated policy decisions from the Federal Reserve and the Bank of Japan following a two-day meeting that concludes on Wednesday. The yen was weaker today as the Tokyo equity markets were up while investors count down to the BoJ decision and there is optimism that the Bank will take some action at this meeting. Unlike the Fed, a move on rates by the BoJ is expected and the odds for [..]

Asian Session – Dollar struggles below 100 yen as FOMC minutes show split views

Posted on August 18, 2016 at 7:47 am GMT

The US dollar stumbled after the minutes of the July FOMC meeting revealed the Fed was still in no hurry to raise rates. The minutes, published yesterday, showed a growing division within the FOMC on the timing of the next rate rise. According to the minutes, a couple of participants advocated for a rate hike in July arguing that the labor market is nearing full employment. However, several other members thought there would be “ample time” to respond if inflation [..]

European Session – Sterling supported by upbeat UK jobs data; dollar slips ahead of Fed minutes

Posted on August 17, 2016 at 3:05 pm GMT

The UK employment report released today was much more upbeat than one would expect in an uncertain environment caused by Brexit. The data was surprisingly robust and lent support to sterling, which mostly held above the key $1.30 level today. A high of $1.3054 was reached in the London session following the UK labour market data. In the month of July, the number of Britons claiming unemployment benefits fell by 8,600, one month after the vote to leave the EU, [..]

Asian Session – Dollar firmer on Fed rate comments; kiwi slips despite upbeat data and rise in dairy prices

Posted on August 17, 2016 at 7:49 am GMT

Fed policymakers revived talk of a possible rate hike in September after two Fed officials kept open the possibility of a move as early as next month. New York Fed President William Dudley said on the Tuesday the Fed is “edging closer” towards the point in time where it will be appropriate to raise rates further. Atlanta Fed President Dennis Lockhart sounded even more hawkish, saying “it’s conceivable” to have two rate increases this year. The remarks pushed the dollar [..]

European Session – Gold rises to 2-week high on post-FOMC weakened dollar

Posted on July 28, 2016 at 1:51 pm GMT

The US dollar remained weak today after tumbling following the release of the FOMC statement late on Wednesday. The decision by the Federal Open Market Committee to keep interest rates on hold brought down the greenback. The only major currency weaker than the US currency was sterling. The pound fell versus its major counterparts on speculation of a rate cut by the Bank of England at its policy meeting next week. Cable slipped to a session low of $1.3136 after [..]

FX Daily Outlook| 28-07-16

Posted on July 28, 2016 at 8:52 am GMT

[..]

Asian Session – Dollar slips despite upbeat Fed; Yen firms as markets await BoJ

Posted on July 28, 2016 at 7:59 am GMT

The Federal Reserve kept monetary policy unchanged yesterday as expected but delivered a slightly more upbeat view of the US economy. Members of the Federal Open Market Committee saw the risks to the economic outlook as having “diminished” since the June meeting in reference to the Brexit vote. However, the FOMC maintained its data-dependent policy, giving little indication to when the next rate hike would come. The dollar spiked up immediately after the Fed’s decision, hitting 106.04 yen, but traders [..]

Fed keeps policy unchanged but sees diminished risks

Posted on July 27, 2016 at 7:46 pm GMT

The US Federal Reserve kept monetary policy unchanged at the end of its two-day meeting today but it left the door open for a possible rate rise this year as it described the near-term risks to the economic outlook as having “diminished”. Concerns over a potential ‘leave’ vote in the UK’s EU referendum and slowing jobs growth in the US in May prevented the Fed from taking action in June. However, those worries have now mostly abated as the labor [..]

European Session – Oil prices tumble after inventories data; Dollar weak on dismal durable goods data and caution ahead of FOMC

Posted on July 27, 2016 at 2:53 pm GMT

Currency markets were relatively quiet ahead of the FOMC outcome later today. The Federal Reserve will conclude a two-day policy-setting meeting and is widely expected to keep rates on hold. But investors will look at the statement for clues into when the Fed will hike interest rates next. The US dollar was broadly weaker against its major counterparts. It came under pressure following a bigger-than-forecast drop in US durable goods orders in June which may spur some concerns about the [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

FOMC

XM Live Chat