Fundamental Analysis 2017.07.26 – USD & Fed Interest Rate and Monetary Policy

As you probably already know, today is expected to a very mobile day for USD with the Federal Reserves’ Interest Rate Decision and Policy Statement. Even more so if the report yields results that weren’t expected by the markets – at the moment due to statements made by Fed Chair Janet Yellen in the beginning of June investors are expecting a hold of interest rates.

Currently GBP/USD managed to reach 1.3083 during Tuesday’s trading day, but returned to 1.3025 shortly after. This was largely due to US bonds increasing rate of return, an observable rise in the industrial PMI of FRB Richmond, and another attempt at voting a reform of Obamacare. Today, investors are waiting for the Federal Reserve’s decision regarding interest rate. The Chair of the Board of the Fed Janet Yellen has stated that a tightened monetary policy has already been enacted by the regulator at the moment though the outcome of the interest rate decision is still ill-defined. the recent action of the Fed has been holding off rate increases until the end of the quarter, and if they abide by this then it is unlikely the meetings will yield anything. The UK GDP Q2 2017 scheduled today that has the potential to affect the GBP/USD by weakening or bolstering the currency pair.

This article comprises the personal view and opinion of the STO Investment Research Desk and at no time should be construed as Investment Advice.

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