US Federal Reserve

The Pound, Euro and other major currencies rose against the Dollar in an initial response to the Federal Reserve's decision to raise interest rates by 25 basis points.

The Euro to Dollar exchange rate has bounced sharply from the year's lows in recent trade but the balance of directional risk remains tilted to the upside ahead of Thursday's European Central Bank (ECB) interest rate decision owing in part to a sharp repricing of the Federal Reserve (Fed) policy outlook. 

The high-profile failures of some small U.S. lenders and the resulting federal effort to prevent panic among depositors elsewhere have led financial markets to revise their outlooks for the Federal Reserve (Fed) interest rate while prompting analysts and economists to reconsider their forecasts.  

Investment bank Nomura is one of the first major investment banks to come out and say the Federal Reserve will cut interest rates next week in light of recent stresses in the U.S. banking system.

GBP/USD fell to its lowest level since January 06 following comments from the Chair of the Federal Reserve, Jerome Powell.

January's Core Personal Consumption Expenditures (PCE) Price Index was potentially an early warning of a nightmare scenario being in the pipeline for policymakers at the Federal Reserve (Fed) but analyst and economist views on the outlook for interest rates and the Dollar inevitably remain far from uniform.

The Pound to Dollar exchange rate came under pressure near 1.20 in the penultimate session of the week as financial markets mulled upside risks to Federal Reserve (Fed) and Bank of England (Fed) interest rates, the relative balance of which is potentially a constraint on Sterling's recovery prospects. 

The pending departure of Vice Chair of the Federal Open Market Committee (FOMC) Lael Brainard is one further potentially hawkish development in the outlook for Federal Reserve interest rates that could have supportive implications for the U.S. Dollar in the weeks ahead. 

The Euro to Dollar exchange rate whip-sawed in a volatile response to official figures revealing accelerating price increases for some goods and services that have placed a question mark over how much longer a recently-declared disinflation process can be expected to continue for in the U.S.  

U.S. Dollar exchange rates were lower with modest losses in many cases by the mid-week milestone after Federal Reserve (Fed) Chairman Jerome Powell's appearance at the Economic Club of Washington prompted a wave of what might have been profit-taking on speculative trading positions. 

Chairman Jerome Powell has indicated the Federal Reserve (Fed) is near a "sufficiently restrictive" level of interest rates and that it's cycle of increases may soon be over but this suggestion came with numerous caveats, details of which can be found in the below transcript of Wednesday’s press conference. 

The Dollar fell sharply against the Pound, Euro and other major currencies after the Chair of the Federal Reserve said the U.S. economy would not require significantly more rate hikes to bring inflation lower.

New and innovative research from Goldman Sachs provides a more timely measure of layoffs in the U.S. job market and suggests Federal Reserve (Fed) officials  are right to be dismissing recently-downbeat economic data while warning of their intention to stay a hawkish interest rate course. 

A look at who the important voices on the Federal Reserve's FOMC will be in 2023.

The Dollar strengthened after the Federal Reserve raised interest rates by 50 basis points and lifted its projections of where it expects interest rates to settle at the end of the hiking cycle in 2023.

The Fed will fail to bring core inflation below 3.0% in the current cycle shows new research, paving the way for a successive cycle of rate hikes.

Pandemic period gains for stock markets and the resulting windfalls for investors have been cited by Federal Reserve (Fed) Chairman Jerome Powell for a sharp increase in retirements that is lifting pay growth for workers but also contributing to inflation and helping to drive interest rates higher. 

Federal Reserve (Fed) policymakers were far from uninanimous in their views on how much further interest rates may need to rise in November and recent data has done little to suggest that would have changed since this month's meeting, though analysts at ING say it's too early to count the U.S. Dollar out.

The Euro to Dollar rate has reversed much of its October recovery in recent trade with the help of a Federal Reserve (Fed) that has quashed market speculation about a dovish pivot or softening of the U.S. interest rate stance and left the outlook for the single currency hanging in the balance. 

The Dollar strengthened in the hours following another large U.S. interest rate hike and a clear message from Chair Jerome Powell that further hikes were necessary to bring inflation lower.