News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.30% Gold: -0.33% Silver: -0.92% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/lEALo4Z1M9
  • The S&P 500 breakdown is testing the first major zone of support and we’re looking for a reaction. Get your S&P500 technical analysis from @MBForex here:https://t.co/JrTNmQ5c7g https://t.co/D79T1134P9
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.29%, while traders in EUR/GBP are at opposite extremes with 65.04%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/lzTHuIgzFQ
  • US Equities Update (Friday Close): $DJI +1.34% $SPX +1.60% $NDX +2.34% $RUT +1.59% $VIX -7.93%
  • Another turbulent week for the Pound with the currency falling 1.6% against the greenback. Get your $GBPUSD market update from @JMcQueenFX here:https://t.co/WjU4oYpmf7 https://t.co/hkow2om7I6
  • Heads Up:🇺🇸 Fed Williams Speech due at 19:10 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-25
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.07% Gold: -0.16% Silver: -0.37% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/hbSoMksZVd
  • With South Africa recently easing restrictions in an effort to reopen the economy, investors are still wary about the future of the emerging market. Get your $USDZAR market update from @Tams707 here:https://t.co/f5Jmukipg0 https://t.co/o5Dyok2O99
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.38%, while traders in EUR/GBP are at opposite extremes with 65.19%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/eO8yAFDUvh
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 1.06% Wall Street: 0.73% France 40: 0.65% Germany 30: 0.59% FTSE 100: 0.37% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/UFnW7j9LC3
Fed Trims Stimulus Again as Economy Continues Steady Growth

Fed Trims Stimulus Again as Economy Continues Steady Growth

2014-02-03 21:05:00
Research, Research Team
Share:

The Federal Reserve announced another cut in monthly bond purchases on January 29 as the US economy continued steady growth in the fourth quarter. The jobless rate slumped broadly in December and consumer spending hit the highest level in more than three years, according to government reports.

The Federal Open Market Committee (FOMC) unanimously reduced its monthly asset purchase program by $10 billion to $65 billion. Tapering was equality split, with the mortgage-backed securities cut by $5 billion to $30 billion and treasury purchases trimmed by $5 billion to $35 billion, according to a statement released after its two-day monetary policy meeting on January 29. The committee expressed satisfaction over recent labor market reports that showed clear signs of improvement.

The unemployment rate dropped to 6.7% in December, as reported by the labor department on January 10. The Fed reiterated that the asset purchase program is not a preset course and its pace is linked to FOMC projections about the labor market. The FOMC did not make any changes in its inflation target, desired jobless rate and short-term benchmark interest rate. The Consumer Price Index (CPI), a key tool to gauge inflation, ticked up by 0.3% in December, the biggest rise since April 2013, as rents and fuels climbed, a labor department report said on January 17.

To support ongoing progress, the committee reassured a highly accommodative monetary policy stance for a longer period of time after Quantitative Easing (QE) ends, the unemployment rate falls below a 6.5% threshold and inflation remains near the 2% target. Economists believe that the central bank’s action of trimming its asset purchase program by $10 billion will be repeated on every monetary policy meeting until the entire QE ends by the end of October this year.

Meanwhile, consumer spending in the US rose by 0.4% in December, a commerce department report said on Friday. Analysts were expecting a 0.2% gain in December. Consumer spending had advanced 0.6% in November. Spending hit the highest level since 2010 in the fourth quarter that consequently helped the US economy to grow at 3.2% during the fourth quarter.

The Fed’s tapering decision aggravated the turmoil in emerging-market currencies which had already been triggered after a growth and manufacturing slowdown in China. After the 2008 financial crisis, the US central bank has adopted an excessive monetary easing policy, which caused a rapid surge in capital flows into emerging-market economies that in turn strengthened their currencies. Now, the Fed’s decision of scaling back monthly stimulus is likely to diminish capital inflows into emerging economies, hence depreciating their currencies. This is the reason why huge a sell-off is being witnessed nowadays in currencies of Turkey, Mexico, Argentina, India, and some other emerging-market economies.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES