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
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
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.17% Gold: -0.33% Silver: -1.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Xshcpqctej
  • $AUDUSD is another Dollar-based pair that is threatening a bigger technical breakdown than perhaps the market is ready to commit to. Overlay is the $SPX https://t.co/pANNa8eAiW
  • After a stern sell-off in July and August, USD/CAD has started to show hues of reversal so far in September. Get your $USDCAD technical analysis from @JStanleyFX here: https://t.co/j5hC4VhhE6 https://t.co/52lHdMIaWm
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.45%, while traders in NZD/USD are at opposite extremes with 69.56%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/tNmubxV6FB
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 0.64% Wall Street: 0.27% FTSE 100: 0.15% Germany 30: -0.02% France 40: -0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/r9XX8BodoC
  • GBP/USD is close to an important support level. If it breaks, the pair will be at its lowest level for two months and further falls would be on the cards over the next couple of weeks. Get your $GBPUSD market update from @MartinSEssex here: https://t.co/YfavzkCF4S https://t.co/A1wNaVKYIa
  • White House Economic Advisor Larry Kudlow: V-Shaped recovery doesn't depend on stimulus $SPY $QQQ
  • Canadian Dollar Price Forecast: USD/CAD Showing Reversal Tendencies https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/09/22/canadian-dollar-price-forecast-usdcad-usd-cad-loonie-puts-in-reversal-tendencies.html https://t.co/C9sxC11kKe
  • Australian #Dollar Forecast: $AUD/USD Plummets, Can Bulls Back the Bid? - https://t.co/FmFrODHLJd https://t.co/UFLhDKMZ7A
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.45%, while traders in NZD/USD are at opposite extremes with 69.83%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/iVljcN5k37
FOMC Holds Rates at April Meeting, Focus Moves to June

FOMC Holds Rates at April Meeting, Focus Moves to June

2016-04-27 18:20:00
James Stanley, Strategist
Share:

Talking Points:

- The Federal Reserve held rates at this afternoon’s meeting with a 9-1 vote.

- The Fed’s statement did remove a key phrase around concern with ‘global risks’ within the economy, alluding to the potential for a hike at the next meeting in June.

- If you’re looking for trading ideas, check out our Trading Guides. And if you want something more short-term in nature, check out our SSI indicator.

The April Fed statement was released this afternoon, and as expected, there were no changes to rates at today’s meeting. The focus for US rate trajectory now moves to the June FOMC meeting, in which markets will also get a press conference and Q&A session to accompany that rate decision. That meeting is going to be held on June 14th and 15th with the announcement expected at 2:00 PM on the 15th, with press conference and Q&A to follow thirty minutes later, beginning at 2:30 PM EDT.

The big takeaway from today’s statement was the removal of a phrase relevant to international economic pressures or ‘global risks,’ indicating that the bank’s fear of global economic headwinds has begun to recede after the tumultuous start to the year. This also alludes to the fact that the Fed may be getting more comfortable towards the topic of hiking rates at their next meeting in June. Given the divergence between market expectations and the median expectation from the Federal Reserve towards future rate hikes, this implication could inspire continued USD-strength as traders begin to factor in higher probabilities of a June hike.

At the previous meeting in March, the Fed had taken a more dovish stance by decreasing the median expectation for rate hikes this year from four hikes to two. This led to an extended down-trend in the US Dollar as rate hike expectations dwindled lower.

Before the release of today’s statement, odds of a hike in June were approximately 22%, and the US Dollar had been in a concerted down-trend for the better part of the past two months. Signs of strength in the Greenback had begun to show over the past week, as a higher-low was established just a day ahead of the meeting, as we had discussed in this morning’s Market Talk article.

FOMC Holds Rates at April Meeting, Focus Moves to June

Created with Marketscope/Trading Station II; prepared by James Stanley

--- Written by James Stanley, Analyst for DailyFX.com

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES