Macro Releases: GBP/USD, EUR/USD

Dukascopy Bank Team Dukascopy Bank SA

GBP/USD: UK Monetary Policy Summary

The British Pound appreciated against the US Dollar, following the UK Monetary Policy data release on Thursday at 11:00 GMT. The GBP/USD exchange currency rate gained 11 pips or 0.09% right after the release. The British Pound continued trading at the 1.1245 level against the US Dollar.

The Bank of England released the UK Official Bank Rate data, which came out in line with the expectations of 0.75%.

According to the official release: "For most of the period following the EU referendum, the degree of slack in the UK economy has been falling and global growth has been relatively strong. Recently, however, entrenched Brexit uncertainties and slower global growth have led to the re-emergence of a margin of excess supply. Increased uncertainty about the nature of EU withdrawal means that the economy could follow a wide range of paths over coming years. The appropriate response of monetary policy will depend on the balance of the effects of Brexit on demand, supply and the sterling exchange rate."

EUR/USD: FOMC Statement and Federal Funds Rate

The European Common Currency depreciated against the US Dollar, following the FOMC Statement release on Wednesday at 18:00 GMT. The EUR/USD exchange currency rate lost 20 pips or 0.18% right after the release. The Euro continued trading at the 1.1105 level against the Greenback.

The Federal Reserve released the Federal Funds Rate data, which came out in line with the expectations of 2.00%.

According to the official release: "Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range for the federal funds rate to 1-3/4 to 2 percent. This action supports the Committee's view that sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective are the most likely outcomes, but uncertainties about this outlook remain."

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