17 Dec 2014
GBP/USD higher in a more dovish FOMC
FXStreet (Guatemala) - GBP/USD is trading at 1.5677, down -0.37% on the day, having posted a daily high at 1.5756 and low at 1.5600.
GBP/USD has been choppy, as expected of course, around the Federal Reserve that has ended its two-day meeting by keeping rates on hold but tweaking the forward guidance by giving themselves a little more flexibility on the last Fed day of 2014 and coming across a little more dovish than expected. However, the S&P 500 skyrocketed 27 points as supportive for US stocks and 10-year yields were up also, continuing with risk-on as was the theme prior to the FOMC today and the dollar rallied. GBP/USD has been caught in a range between 1.5680 and 1.5605 but in last moments at the top of that range.
The markets were gearing up for what would be included or excluded from their statement this time around. The main theme of markets since the past meeting are the prices of oil and whether plunging prices and indeed a stronger dollar would stop policy makers from dropping a vow to keep interest rates low for a “considerable time but instead offering new forward guidance in its verbiage and changing the wording appropriately to accommodate events such as the price of oil and a struggling global growth environment else where with the international market turbulence.
The statement offered us notes along the lines that essentially there are still cyclical factors holding back the labour market which is something that the Fed are tackling and until then, they can afford to be patient as the economy and global economy continues to recover.
GBP/USD has been choppy, as expected of course, around the Federal Reserve that has ended its two-day meeting by keeping rates on hold but tweaking the forward guidance by giving themselves a little more flexibility on the last Fed day of 2014 and coming across a little more dovish than expected. However, the S&P 500 skyrocketed 27 points as supportive for US stocks and 10-year yields were up also, continuing with risk-on as was the theme prior to the FOMC today and the dollar rallied. GBP/USD has been caught in a range between 1.5680 and 1.5605 but in last moments at the top of that range.
The markets were gearing up for what would be included or excluded from their statement this time around. The main theme of markets since the past meeting are the prices of oil and whether plunging prices and indeed a stronger dollar would stop policy makers from dropping a vow to keep interest rates low for a “considerable time but instead offering new forward guidance in its verbiage and changing the wording appropriately to accommodate events such as the price of oil and a struggling global growth environment else where with the international market turbulence.
The statement offered us notes along the lines that essentially there are still cyclical factors holding back the labour market which is something that the Fed are tackling and until then, they can afford to be patient as the economy and global economy continues to recover.