EURUSD long at 1.1180

FX:EURUSD   Euro / U.S. Dollar
No Change In Fed Rates, Case For December Hike Strengthened
As expected, the FOMC opted to leave adminstered rates unchanged today, but raised the likelihood of hike in December. The statement said the case for removing policy accommodation had strengthened, and three participants dissented in favor of a rate hike today. FRB Kansas City's George dissented at previous meetings this year, while FRB Cleveland's Mester was a named risk for dissenting. The surprise is FRB Boston's Rosengren, an erstwhile dove, who has more recently come out with alarms over a commercial real estate bubble.
Turning to the dot plot, FOMC participants' assessments of appropriate monetary policy (i.e., the midpoint of the target range or target level for the federal funds rate) show ten members favor a 25-bp rate hike between now and the end of the year. While the market's inclination is to shift all the probabilities into the December fed funds futures contract, the Fed has a binary option to hike at the November 1-2 meeting or the December 12-14 meeting.
For 2017, the median dot fell to 1.125%, signifying three rate hikes between now and the end of next year. At the June meeting, the median was 1.625% (five hikes). The 2018 median dot was 1.875% (six cumulative hikes), down from 2.375% (eight hikes) at the June meeting.
In the Summary of Economic Projections, the median projection for the change in real GDP for 2016 fell to 1.8% (from 2.0% in the June SEP), while the median projection for the unemployment rate rose to 4.8% (from 4.7% in the June SEP). The core PCE inflation projection cooled to 1.3% (from 1.4%), whereas the core PCE inflation projection was unchanged at 1.7%. Compared to the June SEP, the 2018 medians were unchanged for the change in real GDP (2.0%), PCE inflation (2.0%) and core PCE inflation (2.0%), but down 0.1-pp for the unemployment rate (4.5%).
The statement and supplementary materials signal a hawkish hold, defering the rate hike until after the election and awaing the arrival of incoming data on employment and inflation . As before this meeting, we are highly confident in a December rate hike of 25 bps             .
We have opened EUR/USD             long at market price (1.1180). - Daily Forex Trading Strategies
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out