FOMC will raise rates today

13 June, 2018

Analysts at Nomura think it is highly likely that the FOMC will raise rates at the 12-13 June meeting.

“At this point, it would be extremely surprising were the Committee to forego a rate hike. Economic data have indicated accelerating activity over the intermeeting period, with an unemployment rate at 3.8% and inflation approaching the Committee’s 2% objective. Given that economic momentum has accelerated since March, we expect the Committee’s new rates forecast to reflect a total of four rate hikes in 2018, up from three previously. While a rate hike appears likely, we expect the mechanics of the policy change to be somewhat different in June.”

“Consistent with the May FOMC minutes, we believe the Committee will raise the target range for the federal funds rate by 25bp, to 1.75-2.00%, but will increase the interest rate on excess reserves (IOER) by only 20bp, 5bp lower than the top of the target range. Consistent with the May minutes and recent comments by Governor Brainard and San Francisco Fed President Williams in particular, we expect revisions to the post-meeting statement’s forward guidance language.”

“Finally, we expect Chair Powell’s post-meeting press conference remarks, in addition to explaining the IOER adjustment and forward guidance language changes, to largely adhere to points made by Governor Brainard in her speech on 31 May.”


Source link  
GBP/USD on the offers around 1.2750

Brexit uncertainty, Turkish contagion fears leave the higher-yielding GBP vulnerable. Attention turns to Tuesday UK jobs report amid empty docket today...

Gold bears await a break below

The commodity extended last week's rejection slide from $1235 horizontal resistance and remains within striking distance of an important horizontal...

Gold near term weakness

Gold has fallen to a yearly low, as it lost around 4% in June itself (end-of period prices), contrasting sharply with the above $13000/oz. price performance in the early part...


Dollar holds weaker below mid-94.00s

Fading German political uncertainty lifts EUR and prompts some weakness. Flattening of the US yield curve further collaborates to the weaker tone...

Gold struggles despite softer USD

Fails to benefit from the ongoing USD retracement slide and escalating trade tensions. Fading safe-haven demand/rising US bond yields/ECB QE...

Dollar weakens farther below 92.00 handle

The greenback held on the defensive at the start of 2018, with the key US Dollar Index languishing near its lowest level in over three months...


Environment changes for central banks

2017 may have been extraordinary in terms of the political influences on G10 FX markets, but central banks have stolen a fair share of market...

Gold hangs closer to 5-month lows

Gold came under some renewed selling pressure on Wednesday and eroded majority of its previous session's recovery move from near 5-month lows...

EUR futures: deeper pullback not ruled out

According to CME Group’s flash data for EUR futures markets, traders increased their open interest positions by more than 19.1K contracts...


In the past 24 hours Bitcoin has lost -2.43% and reached $6144.99145622. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -1.6984% and is now at $1.1407. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -32.39% and is now at $264.242481797. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets89%
2FXTMFXTM87%
3HYCMHYCM85%
4FxProFxPro80%
5FIBO GroupFIBO Group78%
6FXCMFXCM73%
7AvaTradeAvaTrade67%
8HotForexHotForex67%
9Alfa-ForexAlfa-Forex66%
10XMXM66%
  


Share: