FOMC's updated economic projections - Sep 20, 2017

Eren Sengezer FXStreet

The Federal Reserve published its updated economic projections, with key headlines, via Reuters, found below:

Median view of appropriate federal funds rate at end-2017 1.375 pct (prev 1.375 pct); end-2018 2.125 (prev 2.125 pct): end-2019 2.688 (prev 2.938 pct); end-2020 2.875; longer-run 2.750 pct (prev 3.000 pct)
Eleven of 16 Fed policymakers see one more rate hike in 2017 compared with 8 in June
GDP growth 2.4 pct (prev 2.2 pct), unemployment rate 4.3 pct (prev 4.3 pct), core inflation 1.5 pct (prev 1.7 pct)
Median Fed forecasts 2018 - GDP growth 2.1 pct (prev 2.1 pct), unemployment rate 4.1 pct (prev 4.2 pct), core inflation 1.9 pct (prev 2.0 pct)
Median Fed forecasts 2019 - GDP growth 2.0 pct (prev 1.9 pct), unemployment rate 4.1 pct (prev 4.2 pct), core inflation 2.0 pct (prev 2.0 pct)
Median Fed forecasts 2020 GDP growth 1.8 pct, unemployment rate 4.2 pct, core inflation 2.0 pct
Median Fed long-run forecasts - jobless rate 4.6 pct (prev 4.6 pct); GDP growth 1.8 pct (prev 1.8 pct)

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD weakens to near 1.1900 as traders eye US data

The EUR/USD pair loses ground to around 1.1905, snapping the two-day winning streak during the early European trading hours on Tuesday. Markets might turn cautious ahead of the release of key US economic data, including US employment and inflation reports that were pushed back slightly due to the recently ended four-day government shutdown.

GBP/USD edges lower below 1.3700 on UK political risks, BoE rate cut bets

The GBP/USD pair trades on a weaker note around 1.3685 during the European session on Tuesday. The Pound Sterling edges lower against the US Dollar amid political risk in the United Kingdom and rising expectations of near-term Bank of England rate cuts.

Gold drifts lower as positive risk tone tempers safe-haven demand; downside seems limited

Gold drifts lower during the Asian session on Tuesday and snaps a two-day winning streak, though it lacks strong follow-through selling and shows some resilience below the $5,000 psychological mark amid mixed cues. The outcome of Japan's snap election on Sunday removes political uncertainty, which, along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.