Today is all about the Fed - Rabobank

Ross J Burland FXStreet

Analysts at Rabobank explained that today is all about the Fed and when/if we start to see the protection that it has offered pulled back a little further.

Key Quotes:

"If so, it’s EMs that will be at the front of the line for volatility once again. The expectation today is of course that we get another 25bp rate hike. However, it will be the dot plot and Fed comments that will be of most significance: how many more hikes are we going to see pencilled in for this year, and for 2019?

Before that action we get a warm-up in the form of UK CPI (seen 2.3% y-o-y headline and 2.1% core) and US PPI (seen 0.3% m-o-m and 2.8% y-o-y for final demand)."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD trimmed most of its intraday gains and approaches the 1.3600 threshold. Tepid United Kingdom data released earlier in the day adds to Sterling Pound retracement, as the flash estimate of the Q4 Gross Domestic Product posted a modest 0.1% advance in the three months to December.