The Federal
Reserve has decided to keep its interest rates at current levels and are
waiting for more signs of growth in the US economy. The FED has used the word “gradual”
when referring to the rate at which interest rates may rise in the future. The
Dollar drops on the news, but it may hold to its recent bullish trend. The
Pound was very volatile when the announcement came out, but it has taken a
clear direction. The FED failed to mention anything about Brexit. But it is
implied that the FED doesn’t want to create more volatility now in the markets
until after the Brexit issue is out of the way. For now the EUR/USD and the
GBP/USD have not taken a clear direction.
Currently major economic risks are on the agenda.
ReplyDeleteThanks for such an informative article.
ReplyDeleteI agree, they are likely waiting for Brexit before they hike the rate.
ReplyDeleteNeither pair will have a clear direction before the 23rd, I think.
ReplyDeleteThe Fed meeting did not remove any uncertainty of the current panorama.
ReplyDeleteHelpful article, thanks!
ReplyDeleteI would be waiting too.
ReplyDelete