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
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.79%, while traders in EUR/GBP are at opposite extremes with 65.81%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/pPMQB3Sgtf
  • Heads Up:🇲🇽 Economic Activity YoY (JUL) due at 11:00 GMT (15min) Expected: -10% Previous: -13.2% https://www.dailyfx.com/economic-calendar#2020-09-25
  • Norges Bank - total liquidity has been unevenly distributed between banks, leading to considerable uncertainty over supply of NOK. Adds that they will offer fully allotted F-Loans at fixed rates with 1 day maturities
  • London put on national Covid watch list amid recent surge in cases
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.29% Gold: -0.42% Silver: -1.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/OTTxCl6GJR
  • Spanish health minister says the government recommends a total lockdown in Madrid
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.18% 🇦🇺AUD: 0.02% 🇯🇵JPY: -0.05% 🇨🇭CHF: -0.11% 🇪🇺EUR: -0.22% 🇬🇧GBP: -0.25% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/37yFAZ530P
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:https://t.co/7kPzAoNoLG https://t.co/Fa4sDLIjww
  • 🇫🇷 Unemployment Benefit Claims (AUG) Actual: -171K Previous: -172.2K https://www.dailyfx.com/economic-calendar#2020-09-25
  • $GBP https://t.co/Gl9Hkc0nTr
US Dollar Steady After Fed Speak Fails To Upgrade Policy Outlook

US Dollar Steady After Fed Speak Fails To Upgrade Policy Outlook

2017-03-29 21:18:00
Christian Lewis,
Share:

Talking Points:

  • Rosengren Favors a hike at every other FOMC meeting this year
  • Four moves should be default position according to Rosengren
  • Fed’s Evans and Williams were more moderate in their statements

Keep up with all the latest market events – including Fed speeches – on theDailyFX Economic Calendar

The US Dollar was unimpressed by the latest round of Fed speakers despite some rather hawkish comments particularly from Boston Federal Reserve President Eric Rosengren. Rosengren stated that he was in favor of a rate hike at every other FOMC meeting this year, which would translate to a total of four. However, the Boston Fed President's default view has held consistently that four hikes should be the Fed’s pace unless data proved otherwise, so today’s comments appeared to be of little surprise. This may explain the muted market response after such obviously hawkish comments.

Fed’s Evans and Williams delivered comparatively moderate statements, essentially holding the 3-hike policy tempo that the FOMC projected at the December 2016 and again March 2017 SEPs (Summary of Economic Projections). Evan’s maintained a slightly more dovish view, stating that he supported another one to two hikes this year. William’s left the door open for a more hawkish interpretation saying that he sees the possibility for more than 3 hikes in 2017 given upside risk.

With reference to this spectrum of forecasts from the Fed members, the market itself still shows considerable speculative weight calling for an additional three and even four additional hikes in 2017. While the probabilities afforded those more aggressive views are significantly lower overall, it suggests there is still a speculative stretch to the current market bearings – from Dollar to S&P 500 – when it comes to monetary policy. Merely keeping to the existing FOMC forecast could therefore promote a shift in market view and price.

US Dollar Steady After Fed Speak Fails To Upgrade Policy Outlook

Fed’s Williams ( San Francisco Fed)

  • 2017 rate view similar to FOMC’s three hikes
  • Sees unemployment bottoming at 4.5% this year
  • More than 3 hikes in 2017 possible given upside risk
  • Rate increase will continue to be gradual
  • Economy will grow at healthy pace amid hikes
  • Sees inflation reaching 2% goal in next year or so
  • Monetary policy limited in room to boost growth now
  • Fed’s role is to keep economy from overheating
  • Shrinking balance sheet will have tightening effect

Eric Rosengren (Boston Fed)

  • Four Fed hikes in 2017 consistent with gradual
  • Both Fed goals being achieved this year
  • Asset prices potential sign of overheating
  • Important to avoid creating an over-hot economy
  • Favors a hike at every other FOMC meeting

Charles Evans (Chicago Fed)

  • Higher business optimism could boost capital spending
  • Inflation of 2.5% for a time consistent with Fed’s goal
  • Supports another one or two rate hikes this year
  • Repeats inflation to reach 2% on sustained basis by 2019
  • Very important to get inflation and expectations up to 2%
  • Expects weaker data in current quarter to prove transitory
  • Won’t act pre-emptively based on proposed fiscal policy
  • Global economy is doing better, ECB policies helpful

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

DISCLOSURES