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
Morning Brief – Will they, won’t they
Charles Porter
Thu 26 Jan 2023
Will they, won’t they It’s one week to the day until the next Bank of England decision. It will prove critical to the value of GBP and perhaps prove to be a defining feature of the currency market for at least the first quarter of this calendar year. Bank rate in the UK currently sits […]
Morning Brief – Inflation
Humphrey Percy
Fri 27 Jan 2023
Inflation With markets as ever getting ahead of themselves by many having decided that the inflation peak is a yesterday thing, there is a dawning realisation that with the current levels of USA 6.5%, 9.2% UK and 10.4% EU as at Dec 2022, inflation is not only well above target of 2% but is still […]
Morning Brief – UK Government Borrowing By Numbers
Humphrey Percy
Wed 25 Jan 2023
UK Government Borrowing By Numbers Many people have a disconnect when it comes to linking government finances with their own-bring on the idea of teaching finance as part of the school curriculum-however, yesterday’s release showing the government borrowing figures fall into the category of both attention grabbing but so eye watering that many will likely […]
