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You are here: Home / US Dollar / FED hike interest rates at last night’s meeting

FED hike interest rates at last night’s meeting

March 16, 2017 by Rob Lloyd

FED hike interest rates at last night’s meeting

Fed buildingIn line with market expectations, FOMC members voted in favour of a 25 basis point hike making it the third time the FED have raised interest rates since the Global recession. Analysts had already called the shots on the likelihood, boasting a 94$ probability following strong non-farm figures on Friday.

The US Dollar turned slightly sour following the Chairlady’s comments, during the press conference Yellen hinted at a return to slower policy changes moving forward, which prompted a small but noticeable US Dollar sell off.

Stronger US economy

Investor appetite for the US Dollar remains at high following a string of economic data released hours before the FED’s interest rate decision. Both Consumer price and retail sale figures came in at market expectations, but highlighted consumer spending was at its weakest in 6 months.

Most economic inidicators point to a strengthening of the US economy, and coupled with President Trump’s economic plans the FED may still have to play catch up in the latter parts of 2017.

President Trump’s speech

Shortly after the FED’s interest rate decision, President Trump held a rally in Nashville in which he encouraged supporters to ’embrace their glorious national destiny’. Speaking out against the Hawaiian judge who blocked his travel ban executive order, President Trump vowed to fight the decision labeling the ruling as ‘weak’. The US Dollar retracted slightly following the rally.

Queen to give Royal Assent on Article 50 today

The Queen is expected to give Royal Assent to the UK Government, allowing Theresa May the legal path for triggering Article 50 and beginning the process of an EU-exit.

With this in mind, GBP/USD may continue to trend lower testing ranges of 1.20 possibly lower as we approach April.

Filed Under: US Dollar

The information on this website is provided for information purposes only. It does not constitute advice to any person on any matter. Every reasonable effort is made to ensure that the information is accurate and complete but we assume no responsibility for and offer no warranty with regard to the same.

About Rob Lloyd

Robert brings with him a wealth of knowledge on what is impacting exchange rates, especially around the subject of the EU Referendum and the implications for Sterling and Euro exchange rates.

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