Eyes on the Federal Reserve
Today sees the first-rate setting meeting of 2019 at the Federal Reserve. The market expectation is that they will leave rates unchanged but what is of much more focus is what is said about interest rate changes going forward. Will the Fed water down further expectations of rate rises given their concern that the US economy is still not sufficiently robust to withstand sharper rises? What is sure is that the Fed will not want to box themselves in to a fixed timetable of rate rises despite the market wanting to understand a well-choreographed programme. Therefore, expect some words around the Fed not able to be specific on this subject until further economic releases clarify the strength of the underlying US economy.
Meanwhile the USD is relatively unchanged and the focus in currency markets has been on GBP and the theatre in Westminster. After a wobble last night GBP has recovered some of its losses this morning and overall has declined approximately 0.5% against the major trading pairs. Brent Crude is back over $60, and the FTSE is slightly firmer at 6900.
For a change while we wait for the Fed and for TM to return to Brussels to do battle on the terms of the UK’s Brexit, today or rather this morning as I write the words of 10CC’s song Wall Street Shuffle do NOT apply!
Do the Wall Street Shuffle
Hear the money rustle
Watch the Greenback tumble
Feel the Sterling crumble
Discussion and Analysis by Humphrey Percy, Chairman and Founder
Click Here to Subscribe to the SGM-FX Newsletter
Related Insights
Daily Brief – 48 Hours
Charles Porter
Thu 11 Sep 2025
48 Hours There has been a noticeable shift in geopolitical risk this week. So how, baring a mild slip lower in EURCHF, have FX markets remained quite so flat? Sure, there have been some contained intraday spikes in some commodity prices but ultimately those legs higher have been thwarted, often in the very same trading […]
Daily Brief – Mixed signals
Charles Porter
Tue 19 Aug 2025
Mixed signals It was not long ago that many investment banks were warning clients of the risk of a slowdown in US equities. Having performed exceptionally well in the aftermath of the pause to Trump’s liberation day tariffs, many market participants warned of the inability of equity values to continue to enable price gains. Volatility […]
Daily Brief – Next!
Charles Porter
Tue 9 Sep 2025
Next! The outcome of the Parliamentary debate in France yesterday leaves the nation in political limbo as its Prime Minister François Bayrou is ousted. The vote yesterday was on the motion that the French Parliament held no confidence in the government’s 2026 budget. As expected, they don’t. Many prominent voices in the market suggested that […]
