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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here:
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here:
  • Long wick candles are recurrent within the forex market. This makes understanding the meaning behind these candles invaluable to any trader to comprehend the market dynamics during a specific period. Learn about the importance of extended wicks here:
  • Safe haven stocks also allow traders to diversify their portfolio and reduce risk. Learn if safe-haven stocks are made for you here:
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here:
  • but the next major point in my view to monitor will be 52.76 - at least in the short term.
  • #Brent having broken above the pre-OPEC drop off at 45.51 is a huge deal considering it failed to crack resistance there in August (leading to the invalidation of "uptrend 2") and the psychological significance of that level
  • The New Zealand Dollar looks poised to extend its push higher against its haven-associated counterparts on robust economic data and a less dovish stance from the RBNZ. Get your $NZD market update from @DanielGMoss here:
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2020? Find out from @JohnKicklighter here:
  • The Swiss Franc may continue higher against the US Dollar as technical pressure favors USD/CHF bears..Get your $USDCHF market update from @FxWestwater here:
EUR/USD Slips as FOMC Forecasts Three Hikes for 2017

EUR/USD Slips as FOMC Forecasts Three Hikes for 2017

2016-12-14 19:16:00
David Song, Strategist

Talking Points:

- Federal Open Market Committee (FOMC) Raises Benchmark Interest Rate by 25bp to Range of 0.50% to 0.75%.

- Fed Officials Keep Terminal Rate Around 2.75% to 3.00%

The Federal Open Market Committee (FOMC) followed a similar path to 2015, with Chair Janet Yellen and Co. voting unanimously to raise the benchmark interest rate by 25bp at the last policy-meeting for the year.

Moreover, central bank officials pushed up the interest rate dot-plot and now see three rate-hikes for 2017, with the longer-run interest rate dot-plot still projecting a terminal rate around 2.75% to 3.00%. The growth and inflation forecasts were little-changed, with only the GDP figures for 2017 highlighting a marginal upward revision to reflect a 2.1% rate of growth compared to the September projection for a 2.0% expansion.

Despite the small pickup in the interest-rate forecast, the Fed warned ‘market-based measures of inflation compensation have moved up considerably but still are low; most survey-based measures of longer-term inflation expectations are little changed, on balance, in recent months,’ and it seems as though the central bank will revert back to a wait-and-see approach at the next announcement on February 1 with Chicago Fed President Charles Evans, Philadelphia Fed President Patrick Harker, Dallas Fed President Robert Kaplan and Minneapolis Fed President Neel Kashkari slate to vote on the FOMC in 2017.

December 2016 Projections

EUR/USD Slips as FOMC Forecasts Three Hikes for 2017EUR/USD Slips as FOMC Forecasts Three Hikes for 2017

Source:Federal Reserve

September 2016 Projections

EUR/USD Slips as FOMC Forecasts Three Hikes for 2017EUR/USD Slips as FOMC Forecasts Three Hikes for 2017

Source:Federal Reserve

EUR/USD Slips as FOMC Forecasts Three Hikes for 2017

EUR/USD struggles to hold its ground following the Fed rate-hike, with the pair slipping below the 1.0600 handle ahead of Chair Janet Yellen’s press conference. The bearish reaction in the euro-dollar exchange rate may spur a move back towards the December low (1.0505) especially as the FOMC appears to be on course to further normalize monetary policy in the year ahead.

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