28 Jan 2015
GBP: Fed volatility within 50 pip range, scores ground on 1.52 handle
FXStreet (Guatemala) - GBP/USD is volatile over a mixed statement, that came out neutral/dovish in the statement after leaving rates on hold at 0.25%.
GBP/USD was between 1.5153 and 1.5201. On a dovish statement, US stocks moved up on the release and Wall Street was higher, building on the advances ahead of the release. Yellen's position is predominant and it is clear that there is unanimity around the table in the FOMC. It acknowledged that there is stronger growth, the employment picture is still fairly robust and it is overall a more bullish statement, although low inflation is a worry while keeping on eye on international developments, but in the medium term, they expect the 2% inflation target be achieved.
The Fed are remaining patient, while the consensus in the market for a hike remains mid 2015, while some analyst are putting back forecasts as far as the middle of 2016, in line with Fed's Charlie Evans recent outlook. Moreover, there really is not a clear vision for this year and this statement allows the economy a few months for the Fed to get a better read on things.
GBP/USD was between 1.5153 and 1.5201. On a dovish statement, US stocks moved up on the release and Wall Street was higher, building on the advances ahead of the release. Yellen's position is predominant and it is clear that there is unanimity around the table in the FOMC. It acknowledged that there is stronger growth, the employment picture is still fairly robust and it is overall a more bullish statement, although low inflation is a worry while keeping on eye on international developments, but in the medium term, they expect the 2% inflation target be achieved.
The Fed are remaining patient, while the consensus in the market for a hike remains mid 2015, while some analyst are putting back forecasts as far as the middle of 2016, in line with Fed's Charlie Evans recent outlook. Moreover, there really is not a clear vision for this year and this statement allows the economy a few months for the Fed to get a better read on things.