EUR/GBP had a neutral-to-bullish day after six negative sessions in a row ahead of the crucial BoE interest rate decision which will probably be the first rate hike in a decade, while GBP/JPY recorded a five-week high. Fed keeps a positive outlook, though it failed to prevent U.S. dollar from falling.
Fed Keeps The Positive Outlook But U.S. Dollar Slipped Lower
Fed keeps rates unchanged as expected, the U.S. ADP surpassed market forecast but the U.S. dollar ended the day lower against most of the majors. The greenback rose against the single currency at the first half of the day, however, later, it lost all of its gains and slipped lower. The FOMC policymakers see the economy on a good track without significant impact from the hurricanes over the medium term.
Following the monetary policy statement and the decision to keep rates unchanged at 1.25% the Fed CME tool raised expectations for a rate hike in December to 92.3% from 82.8% before. The ADP employment beat market consensus of 200K and jumped to 235K from 110K in September. On the other hand, the ISM manufacturing dropped to 58.7 in October from 59.5 expected and 60.8 the prior month. The next events that traders expect are the NFP report tomorrow and the announcement from the U.S. President Donald Trump of who will be the next Fed Chair.
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