ECB, Fed Minutes in Focus as Traders Look for Policy Clues
- GBPUSD backs off daily highs after BoE policy decision.
- Commodity FX bloc benefiting from policy speculation again.
With the Bank of England shifting its inflation forecast today, the Federal Reserve keeping rates on hold in September, and the European Central Bank downgrading its growth and inflation forecasts in September, there is a strong wave of support for the belief that the current ZIRP environment will persist well into 2016 and beyond. Speculation over central bank policy staying looser for longer is helping the commodity currency bloc again.
--- Written by Christopher Vecchio, Currency Strategist
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