Currently, GBP/USD is trading at 1.3529, up 0.21% on the day, having posted a daily high at 1.3658 and low at 1.3495.
- Live Coverage: FOMC September 20th
- FOMC's decisions regarding monetary policy implementation - Sep 20, 2017
- FOMC statements: Comparison between July and September
Prior to the outcome of the FOMC, bulls were taking back control when cable rose by nearly a cent to 1.3608 the highs on the UK retail sales beat overnight and was making fresh pre-FOMC highs for the US session at 1.3601, in pursuit of London's aformentioned high. However, on the outcome of the FOMC, GBP/USD was two-way business on the knee-jerk, making a fresh high and low for the session.
FOMC main takeaways:
With the dot plot of the Fed's funds rate as the main focus, the FOMC continues to forecast one more hike in 2017, three more in 2018.
- The Federal Reserve left rates in the 1.00%-1.25% range.
- The Fed announced that it will begin to unwind of $4.5 trillion balance sheet in October.
- Hurricanes unlikely to affect the medium-term path of the economy.
Correlated reactions:
- US ten-year yields have picked up to 2.2340 at the time of writing, but still -0.47% on the day.
- The DXY has popped to 91.95 at the time of writing.
- Stocks are mostly unchanged.
- WTI is little changed at 50.84.
EUR/GBP: Having fallen half-a-penny to 0.8825 lows on the UK retail sales beat, the cross is now printing new lows at 0.8796 and remains down troddern.
GBP/USD levels
Analysts at Commerzbank previously noted that critical resistance was located at 1.3670, a double Fibo and the 2014-2017 downtrend. They explained that given the convergence of resistance here we would expect this to hold the initial test and provoke some profit taking. "In order to alleviate immediate upside pressure the market will need to fall sub 1.3267 (August high)," the analysts added.
Next in focus
Yellen's presser coming up, and UK PM May's Brexit speech on Friday: Downing Street announced that a speech by Theresa May has been billed as an important moment in the Brexit negotiation process. This will take place in Florence 22nd September.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected
USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Ethereum could remain inside key range as Consensys sues SEC over ETH security status
Ethereum appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the US SEC and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.