Daily FX Market Roundup 09.17.15

Investors sold U.S. dollars after the Federal Reserve left interest rates unchanged today citing uncertainty abroad and slightly softer inflation as reasons for waiting. Their decision was NOT unanimous with Jeffrey Lacker breaking from the ranks to vote in favor of a 25bp rate hike. While the Fed passed on a rate hike in September, they are still thinking about raising interest rates this year. In fact 13 of the 17 members of the FOMC expect liftoff to begin in 2015. As such we believe that there should be further weakness in the greenback before a renewed rally going into the next monetary policy meeting.

Yellen made it clear that fundamentally their outlook has not changed and they still believe the U.S. economy is performing well even though dollar bulls were disappointed by the Fed’s decision to hold rates steady. They want to see further improvement in the labor market and hopefully inflation before raising interest rates. While the Federal Reserve boosted its forecast for 2015 growth they lowered their projections for 2016 and 2017 growth along with their projections for the unemployment rate, inflation and Fed Funds rate.

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Published: 17 September 2015

Written by Editor

opinon blog

LONDON (MarketWatch) — The euro fell to its lowest level against the dollar since September 2003 after the Swiss National Bank scrapped its exchange rate floor of 1.20 francs to the euro, which had been in place since 2011.

The central bank’s decision reflects investors’ expectation that the European Central Bank will decide to begin buying government bonds at its Jan. 22 meeting in an effort to stimulate the faltering European economy, analysts said. This helped weaken the euro against its major rivals.

The euro fell as low as $1.1566 after the central bank’s decision sent the currency tumbling to new multi-year lows against most of its rivals.

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Published: 15 January 2015

Written by Editor

The Swiss National Bank surprised markets on Thursday by introducing a negative interest rate on sight deposit account balances, seeking to discourage safe-haven buying by investors anxious over the crisis in Russia and oil's slide.

In a brief statement, the SNB said it would impose an interest rate of -0.25 percent on sight deposit account balances of over 10 million Swiss francs and expand its three-month Libor target range to -0.75 percent to 0.25 percent.

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Published: 18 December 2014

Written by Editor

Economy

By Shonn Campbell of FX Inventory

The $$ bull feels like its losing steam. I will be looking for inventory opportunities like this on the EUR as scalps, not swings. Once the ma’s and price are above the 200 then we can start swinging the trade. Until then, short term.

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Published: 03 September 2014

Written by Editor

opinion

By Jennifer Ryan

The Bank of England said two policy makers wanted an interest-rate increase this month, marking the first split in more than three years and the first under Governor Mark Carney.

Martin Weale and Ian McCafferty voted to increase the benchmark rate by 25 basis points from a record-low 0.5 percent, according to the minutes of the Monetary Policy Committee’s Aug. 6-7 meeting. The remaining seven members opted to keep the rate on hold, saying early tightening could leave the economy “vulnerable to shocks” and jeopardize indebted households.

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Published: 20 August 2014

Written by Editor

Financial