Forex Today:Fed’s announcement met expectations, dollar grinds higher

Here is what you need to know on Thursday, September 17:

The US Federal Reserve had a  monetary policy meeting but was unable to impress investors.  Powell formalized in the statement the latest framework shift to an average inflation target. Fresh forecasts showed that the FOMC expects the GDP to contract by 3.7% at a softer pace than the previous forecast of 6.5% in 2020 and sees unemployment at 7.6% at year's end, compared to 9.3% in June projection. Fed fund rates are seen unchanged for this year and the next ones, while inflation was downwardly revised for this year to 1.0% from 1.5%. US policymakers are open to adjusting the monetary policy further as needed but suggested they will remain on pause for now.

The dollar advanced modestly at the end of the day, but there were no notable developments across the board, except for EUR/USD which fell below 1.1800.

GBP/USD surged to 1.3000 and finished the day around 1.2960, on reports the UK offered tentative concessions on fisheries in trade talks with the EU, one of the main issues blocking negotiations in the last months. Pound bulls ignored the Fed. The focus shifts now to the BOE monetary policy announcement early Thursday.

Yoshihide Suga has been confirmed by the Japanese Parliament as the new Prime Minister of the country. He is expected to follow Abe’s path, and that should keep the waters calm, at least from that front.  The USD/JPY plunged below 105.00 and retains its bearish stance heading into the Asian opening.

Gold prices fell with the Fed, amid no more stimulus expected in the near term. Nevertheless, the bright metal held within familiar levels, trading at around 1,955 at the end of the day.

Crude oil prices were firmly up, finding support in the EIA, which reported that US crude stockpiles dropped by 4.4 million barrels last week, against estimations of a 1.3 million increase. In addition, Hurricane Sally forced the shutdown of more than 25% of oil production in the Gulf of Mexico.

Australia will publish August employment data, while the BOJ is having a monetary policy meeting early Thursday, granting some action during the upcoming Asian session.


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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD trades at fresh September lows

Risk-aversion is the main theme this Monday, amid resurgent coronavirus cases in the Old Continent and the announcement of  new lockdowns. ECB’s Lagarde said the economic recovery in the EU is “very uncertain, uneven and incomplete.”


GBP/USD extends slump sub-1.2800

The Pound plunged on a dismal market mood, as PM Johnson acknowledged the kingdom is undergoing a second coronavirus wave. GBP/USD trades at one-week lows around 1.2800.


XAU/USD bullish bias starting to fade

Gold prices are testing the bull's commitments at the support structure around $1,906 in what could be a final test before the next leg higher of the bullish trend.

Gold News

Bitcoin needs to defend critical support level at $10,600

Bitcoin was trading inside an ascending triangle pattern between September 3 and September 15, which is created when the price establishes higher lows and a horizontal trendline around the swing highs. 

Read more

WTI plummets to $39, down more than 4%

Crude oil prices closed the previous week sharply higher but erased a large portion of those gains on Monday. As of writing, the barrel of West Texas Intermediate was down 4.2%, the biggest daily percentage decline in nearly two weeks, at $39.15.

Oil News