FXStreet (Guatemala) - The session was dominated by the Fed and FOMC that gave us a review of Fed members out look for the economy and future interest rates. The Board of Governors of the Federal Reserve made its decision this month to leave rates at 0.25% as widely expected. They will continue to taper at $10B to $35B from $45B also as expected.
There were changes in the Unemployment rate that suggest the Fed are optimistic looking forward. However, the GDP forecast for 2014 was revised down to 2.1 / 2.3 but there were no changes in 2015 or 2016. Currencies reacted differently initially to the dollar, but have settled broadly higher against the greenback as the market digested the details and Yellen’s comments as relatively dovish and bearish for the greenback.
EUR/USD was lacklustre in it’s making of advancements in the dollar compared to other currencies, painting a bearish outlook for the pair. The initial spike up to test 1.36 was short-lived directly after the announcement but it has since re-gathered itself back onto the bid post a choppy market and is attempting the handle yet again.
GBP/USD was also indecisive around the releases until the news was digested and the greenback was dumped in a dovish backdrop from the Fed. The pair tested 1.6920 and then penetrated the 1.70 handle to make a high of 1.7002 before easing back into threatening territory of 1.6990.
USD/JPY marked a high of 102.37 before plummeting through the 102 handle but slowing up in 101.90. Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart indicators lost upward strength but remain above their midlines, putting the pressure to the downside but not yet confirmed. “Further slides below 101.60/70 area are required to see a leg lower towards 101.20/30 price zone, in route to this year lows around 100.70”.
Fed reduces QE by $10B to $35B as expected
Fed leaves Rates on hold for considerable period of time
US current account deficit rises
Forex FundamentalsAs the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
EconomicsOne particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
ForexBreaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
InvestingAccess to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
EconomicsSouth Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
Forex EducationPeer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
ForexHere is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
EntrepreneurshipA brief overview of the top apps that help forex traders with on time information, charts and more.
Investing BasicsVirtual currency is probably here to stay, but what about Bitcoin specifically? Does it have a first-to-market advantage? What are the risks involved?
Forex NewsWhen it comes to forex, some types of "fixes" are legal. But some really aren't.
- No results found.