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18 Mar 2015
GBP/USD: FOMC slightly dovish, but June still possible
FXStreet (Guatemala) - GBP/USD is trading at 1.4780 currently post the FOMC decision and statement, with a high of 1.4794 and a low of 1.4633.
The greenback is extending losses across the board with GBP/USD over 1 and half cents higher. The "patience" language was dropped but the Fed are still on watch and monitoring the economy for a number of requirements including signs of an improvement in the labour market.
Votes were unanimous however and even the hawks have started to become more dovish, with now 15 of 17 members thinking that an increase will happen this year but with the rate at just 0.625% by the end of 2015. This means that markets should not expect moves at every meeting if they do start to move, say, in June.
The dollar is lower on the back of a mixed outlook and a number of projections forecasted by the Fed coming in lower in GDP, inflation and unemployment for example. All in all, there are mixed messages here, so when the Fed do start to move, perhaps as early as June, it will certainly not be as aggressive.
The greenback is extending losses across the board with GBP/USD over 1 and half cents higher. The "patience" language was dropped but the Fed are still on watch and monitoring the economy for a number of requirements including signs of an improvement in the labour market.
Votes were unanimous however and even the hawks have started to become more dovish, with now 15 of 17 members thinking that an increase will happen this year but with the rate at just 0.625% by the end of 2015. This means that markets should not expect moves at every meeting if they do start to move, say, in June.
The dollar is lower on the back of a mixed outlook and a number of projections forecasted by the Fed coming in lower in GDP, inflation and unemployment for example. All in all, there are mixed messages here, so when the Fed do start to move, perhaps as early as June, it will certainly not be as aggressive.