27 Apr 2016
FOMC leaves bearish outlook for USD - FXStreet
Valeria Bednarik, chief analyst at FXStreet explained that after a long waiting the FOMC statement finally struck markets, leaving a sour taste in dollar's bulls mouth.
Key Quotes:
"The US Central Bank decided to keep rates on hold, as expected, while some modest changes to the wording of the statement failed to clarify the date of an upcoming rate hike."
"The dollar initially rallied across the board, on a headline announcing that the FED is no longer concerned over the economic slowdown, by omitting to say that “global economic and financial developments continue to pose risks,” whilst once again, they seem comfortable over the developments of the job's sector.
Finally, the committee reiterated that it will probably raise rates at a “gradual” pace. Anyway, the statement failed to clearly hint an upcoming rate hike, and chances have diminished for a move during the June meeting.
After investors digested the news, the dollar is modestly lower across the board, with all eyes now on the Bank of Japan' decision, to be announced some time during the upcoming Asian session."
Key Quotes:
"The US Central Bank decided to keep rates on hold, as expected, while some modest changes to the wording of the statement failed to clarify the date of an upcoming rate hike."
"The dollar initially rallied across the board, on a headline announcing that the FED is no longer concerned over the economic slowdown, by omitting to say that “global economic and financial developments continue to pose risks,” whilst once again, they seem comfortable over the developments of the job's sector.
Finally, the committee reiterated that it will probably raise rates at a “gradual” pace. Anyway, the statement failed to clearly hint an upcoming rate hike, and chances have diminished for a move during the June meeting.
After investors digested the news, the dollar is modestly lower across the board, with all eyes now on the Bank of Japan' decision, to be announced some time during the upcoming Asian session."