All Articles Tagged - FOMC

Asian Session – Dollar near 2-month highs as Fed minutes leave door open for June hike

Posted on May 19, 2016 at 7:40 am GMT

Hawkish minutes by the Fed drove the dollar higher towards two-month highs in early Asian trading on Thursday as investors re-adjusted their expectations of a June rate hike. In the minutes of the April policy meeting, FOMC participants agreed that if the incoming data points to higher second quarter growth, improving labour market conditions and inflation rising towards the Fed’s 2% target, then it would be appropriate for the Committee to increase the Fed Funds rate in June. Several Fed [..]

European Session – Dollar rises to 3-week high versus yen ahead of FOMC minutes; sterling rallies on Brexit poll

Posted on May 18, 2016 at 2:42 pm GMT

The US dollar picked up strength ahead of the release of the FOMC minutes of the April 26-27 Fed policy meeting. The dollar index reached an intra-day high of 94.99, a near one-month high. There are expectations that the minutes would appear more hawkish especially since the Fed statement after the conclusion of the latest meeting was less dovish and removed references to global economic and financial developments as an ongoing risk. Recently some Fed policymakers have been suggesting two [..]

Asian Session – Dollar lifted by strong inflation and Fed comments; yen up on Japan GDP

Posted on May 18, 2016 at 7:38 am GMT

The dollar and the yen both headed higher on Wednesday as strong data boosted both currencies. Japan’s economy expanded by more-than-expected in the first three months of the year, data out today showed. First quarter GDP growth was 0.4% quarter-on-quarter, a significant improvement on the downwardly revised 0.4% contraction of the previous quarter and higher than the forecasts of 0.1% growth. However, analysts cautioned that the improved figures were mainly down to a jump in consumption as a result of [..]

US consumer prices post biggest monthly gains since 2013; dollar mixed

Posted on May 17, 2016 at 2:10 pm GMT

Consumer prices in the United States posted their biggest month-on-month increase in April since February 2013, adding to the evidence of steadily rising inflationary pressures in the country. CPI in April was up 0.4% from the previous month – the biggest increase in three years and above forecasts of 0.3%. On an annual basis, CPI rose by 1.1% – in line with estimates but up from 0.9% in March. The core rate, which excludes food and energy items, also quickened [..]

FX Daily Outlook|28-04-16

Posted on April 28, 2016 at 10:15 am GMT

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Asian Session – Yen surges after BoJ stands pat; kiwi also firmer but dollar slips

Posted on April 28, 2016 at 7:52 am GMT

The yen soared against other major currencies on Thursday after the Bank of Japan surprised markets by keeping monetary policy unchanged at its April meeting. Expectations had been building since last Friday that the Bank would announce fresh stimulus measures following reports that policymakers were considering broadening the use of negative interest rates. However, speaking at the press conference after the meeting, the Bank’s governor, Haruhiko Kuroda told reporters that the Bank is not thinking about applying negative rates to [..]

Fed holds rates but more upbeat on US jobs market; dollar gains

Posted on April 27, 2016 at 7:33 pm GMT

The Federal Reserve Open Market Committee announced its decision after a two-day meeting on Wednesday, to keep interest rates unchanged. As was widely expected, the Fed funds rate (overnight lending rate) was left in a range of 0.25% to 0.5%, when they were last raised in December 2015 by 25 basis points. That was the first rate hike after almost a decade. The vote to hold rates was not unanimous though. One member of the FOMC, Esther George, voted against [..]

European Session – Major currencies seek direction from FOMC, BoJ; Oil retreats from 2016 highs

Posted on April 27, 2016 at 2:42 pm GMT

Trading was cautious in Wednesday’s European session as investors await the outcome of three central bank meetings due in the next 12 hours. The US Federal Reserve will be the first to announce its decision at 18:00 GMT and the dollar was struggling to find direction ahead of this key event. The greenback firmed against the yen during the course of the day but lost ground against the euro. Expectations that the Bank of Japan will announce some new measures [..]

Asian Session – Dollar extends slide ahead of FOMC; aussie plunges on weak inflation

Posted on April 27, 2016 at 7:37 am GMT

The US dollar continued to slip against major currencies on Wednesday ahead of the FOMC policy announcement later today. Although the Fed is almost certain to keep rates unchanged at its meeting today, investors will be anxiously waiting for the FOMC statement to check whether the committee see the downside risks to the US economy as having increased or diminished since March. A dovish outlook would reduce the probability of a June rate hike and keep the pressure on the [..]

European Session – Dollar weakness ahead of Fed pushes pound and euro higher

Posted on April 26, 2016 at 2:56 pm GMT

The US dollar was once again under pressure today, with its European session decline continuing into the US session open. Pre-FOMC positioning in the dollar have driven moves in the currency markets today. While no rate hike is expected, investors are nevertheless being cautious ahead of this key risk event on Wednesday. The euro and the pound outperformed, breaking important psychological levels. Sterling rallied to a more than 2-month high of $1.4637. Aside from the broadly weaker greenback, lending support [..]

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