Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Fed Is Keeping Its Options Open

Published 29/07/2015, 08:14
AUD/USD
-
USD/CAD
-
NZD/USD
-
AUD/NZD
-

The two-day FOMC meeting concludes today with the focus on the statement released at 18:00 GMT. There is no real anticipation that policy will be changed, but the focus will be on the extent to which the statement indicates a tightening to come and possibly as early as September. Bear in mind that when the Fed dropped the phrase “considerable period” (in relation to how long rates will be kept low) back in January of this year, they were stepping back from offering more structured forward guidance.

As such, it would be surprising if they offered specific guidance indicated a near-term move, especially given the recent developments in global stock markets. The dollar has been in retreat in recent sessions against selected majors, but still gaining vs. most emerging market currencies.

The overnight session has been relatively subdued. We are seeing the kiwi higher on the back of the latest comments from RBNZ Governor Wheeler, who suggested the pace of easing would be more subdued than the market was anticipating. This allowed the kiwi to move back above the 0.67 level, with AUDNZD briefly touching the 1.09 level. As with the RBA in Australia, he continues to believe his currency is overvalued, but the markets currently choosing to brush this view under the carpet.

We’ve seen some stability in Chinese stocks overnight, which has supported a more stable tone to stock markets in Asia. The dollar’s more recent downward reversal against the commodity currencies has also continued, USDCAD moving back below the 1.30 level, whilst the Aussie has recovered from the year’s low made earlier in the week at 0.7257.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.