Fed looks set to lower the target band by 25bps again – Rabobank

According to analysts at Rabobank, today, the New York Fed will conduct another operation to inject more overnight cash into the market and with the effective fed funds rate near the top of the band, these operations may be necessary to transmit the FOMC’s monetary policy decisions.

Key Quotes

“The Committee looks set to lower the target band by 25bp again today to maintain the US expansion. However, where the policymakers still see these rate adjustments as ‘insurance cuts’ rather than the start of an easing cycle, our US strategist begs to differ.”

“In his view there is a strong possibility of a third cut this year, probably in October already, as uncertainty continues to cloud the outlook. Moreover, Philip believes that this will be followed by an actual cutting cycle next year as the economy heads into a recession.”

“The decision today will be accompanied by new economic projections, including the dot plot. While the latter should serve as an indicator of where the Committee believes rates will move from here, Philip notes that the June projections did not signal any rate cuts for this year. With a second cut forthcoming, this shows that we should definitely not take the dot plot for granted.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD at daily lows, dragged by Sterling

Turmoil around Brexit and the absence of any other relevant catalyst weighs on the common currency, EUR/USD battling with 1.1120.


GBP/USD loses 1.2900 as Parliament says “NO”

The UK Parliament has rejected PM Johnson’s time table, lifting odds of an upcoming election in the kingdom. Volatile trading ahead of more clarity as the drama continues.


USD/JPY holds steady above mid-108.00s

The USD/JPY pair failed to capitalize on the early uptick to multi-day tops and is currently placed at the lower end of its daily trading range, just above mid-108.00s.


Gold heads higher as Brexit uncertainty prevails over trade-deal hopes

In the final hour of trade on Wall Street, spot gold was moving in on the 1490 level, trading higher by 0.22% having travelled between a low of $1480.91 and a high of $1489.04.

Gold News

Top 3 price prediction BTC, ETH, XRP: CFTC takes a surprisingly bold step to move cryptos forward

The CFTC is open to Ethereum futures without anyone picking-up the ball. XRP is currently the only bullish option currently in the Top Three. Current volatility levels have last been seen in May.

Read more