US Federal Reserve

The Pound to Dollar rate was left subdued near to 1.30 and at risk of further losses following the release of minutes from the March Federal Reserve (Fed) meeting, which suggested that financial markets are yet fully appreciate the pending shift in U.S. monetary policy.

Dollar exchange rates lifted following the comments as markets braced for a more rapid ascent in U.S. interest rates than had previously been expected.

"Overall, GBP is expected to trade on a firm footing as long as it does not move below 1.3040 within these few days" - UOB.

"To improve labor supply, the Fed might try to put volatility in its service to engineer a correction in house prices and risk assets – equities, credit, and Bitcoin too," says Zoltan Pozsar of Credit Suisse.

Softer USD gets no help from Jan FOMC minutes, hawkish market left guessing over March move.

GBP/USD risks slide back toward 2021 lows as USD rally accelerates on Fed policy stance.

A guide to the most influential voices on the Federal Reserve in 2022. 

The Federal Reserve spooked markets and boosted the Dollar after revealing it could raise interest rates as soon as March, opening the door to a potential four rate hikes in 2022.

A 'hawkish' Federal Reserve decision to speed up the pace at which it reduces supportive monetary policy was not enough to boost the Dollar, suggesting the market might now be fully priced for the removal of stimulus over coming years.

GBP/USD nurses wounds near 2021 lows and downside risks abound as Fed could hasten its QE taper and rate rises earlier than anticipated.

The bid to the Dollar following Biden's decision suggests an element of the market was positioned for a surprise whereby Brainard was appointed.

The British Pound rallied against the Dollar in the immediate wake of the Federal Reserve's November policy update to record a half-percent gain on the day.

The Pound-to-Dollar exchange rate was close to 2021 lows and vulnerable to further losses after the Federal Reserve turned ‘hawkish’ in its guidance.

For the Dollar bulls, this miscalculation has proven costly.

The Pound-to-Dollar exchange rate entered the Thursday session on the back foot but having weathered better than many others the Federal Reserve’s revelation that it will likely announce as well as commence a tapering of its quantitative easing programme before year-end, triggering a rally by the Dollar in response.

Dollar demand is intact with no less than three Federal Reserve members having already this week said the time to start reducing the Fed's asset purchase programme is fast approaching.

Comments from a prominent member of the Federal Reserve sent a message to foreign exchange markets that the Dollar will likely remain supported against the Euro for a while yet, delaying the prospects of a material recovery in the Euro-to-Dollar exchange rate (EUR/USD).

The Pound-to-Dollar exchange rate entered the penultimate session of the week probing the 1.39 handle following overnight Dollar declines that came after Federal Reserve Chairman Jerome Powell took with one hand what the bank itself had previously appeared to give with the other.

The highlight of the week for the U.S. Dollar and global markets approaches in the form of Wednesday's Federal Reserve policy update.

The Dollar was up sharply against major peers following the release of U.S. inflation numbers that were significantly stronger than expected.