🎙️ FX Talk | Get updated on what's happening on the financial markets in 20 min. listen here.
-
AU
- Australia - English
- België - Nederlands
- Belgique - Français
- Canada - English
- Česká Republika - Čeština
- Deutschland - Deutsch
- España - Español
- France - Français
- Ελλάδα - Ελληνικά
- Hong Kong - English
- Italia - Italiano
- Luxembourg - English
- Nederland - Nederlands
- Polska - Polski
- Portugal - Português
- România - Română
- Schweiz - Deutsch
- Suisse - Français
- United Arab Emirates - English
- United Kingdom - English
- Hong Kong-Traditional Chinese
Ebury London
100 Victoria Street
London
SW1E 5JL
+44 (0) 20 3872 6670
[email protected]
Ebury.com
Federal Reserve signals March rate hike in Yellen’s final meeting
- Go back to blog home
- Latest
1 February 2018
Senior Market Analyst at Ebury. Providing expert currency analysis so small and mid-sized businesses can effectively navigate international markets.
The US Dollar edged modestly higher against its major peers last night following the Federal Reserve’s first monetary policy meeting of 2018, Janet Yellen’s final meeting as Chair.
The hawkish assessment from the Fed last night reinforces our view that the Central bank remains firmly on course to raise interest rates again at its next meeting in March, Jerome Powell’s first as the new Chairman. Financial markets are in agreement and are now pricing in a 99% chance of a hike next month, up from 90% prior to last night’s meeting. We then forecast another hike in August and, in our view, a total of four hikes during 2018 still remains very much on the cards.
Sterling spikes to near one week high, Eurozone inflation slows
Sterling spent much of Wednesday fairly range bound against the US Dollar, shrugging off an earlier report that EU officials had rejected the City of London’s Brexit plans for banks. The currency then jumped by over half a percent this morning back above the 1.42 mark. With no major catalyst cited, the sharp upward move in the currency was largely driven by technical factors. Traders will now turn their attention to this morning’s manufacturing PMI, which could present additional support for the Pound if it surprises to the upside.
Meanwhile there was some better-than-expected economic data out of Germany yesterday, further improving optimism surrounding the recovery in the Euro-area. Unemployment in Europe’s largest economy unexpectedly dropped by 25,000 in January, taking the overall jobless rate in the country to a fresh record low 5.4%. Eurozone inflation news for last month was less encouraging. The headline measure of price growth slipped back to 1.3%, reinforcing our view that the European Central Bank remains a long way off raising interest rates in the currency bloc.
Cookies and Privacy
This site uses cookies to ensure you get the best experience. For more information see our Privacy NoticeAccept Settings Reject
Privacy Overview
Cookie | Duration | Description |
---|---|---|
cookielawinfo-checkbox-advertisement | 1 year | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement". |
cookielawinfo-checkbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checkbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
Cookie | Duration | Description |
---|---|---|
_ga | 2 years | This cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors. |
_ga_DGRPXRE06R | 2 years | This cookie is installed by Google Analytics. |
_gat_gtag_UA_51187572_49 | 1 minute | This cookie is set by Google and is used to distinguish users. |
_gid | 1 day | This cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form. |
CONSENT | 16 years 4 months | These cookies are set via embedded youtube-videos. They register anonymous statistical data on for example how many times the video is displayed and what settings are used for playback.No sensitive data is collected unless you log in to your google account, in that case your choices are linked with your account, for example if you click “like” on a video. |
pardot | past | The cookie is set when the visitor is logged in as a Pardot user. |
Cookie | Duration | Description |
---|---|---|
IDE | 1 year 24 days | Used by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile. |
test_cookie | 15 minutes | This cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies. |
VISITOR_INFO1_LIVE | 5 months 27 days | This cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website. |
YSC | session | This cookies is set by Youtube and is used to track the views of embedded videos. |
yt-remote-connected-devices | never | These cookies are set via embedded youtube-videos. |
yt-remote-device-id | never | These cookies are set via embedded youtube-videos. |
Cookie | Duration | Description |
---|---|---|
_lfa | 2 years | This cookie is set by the provider Leadfeeder. This cookie is used for identifying the IP address of devices visiting the website. The cookie collects information such as IP addresses, time spent on website and page requests for the visits.This collected information is used for retargeting of multiple users routing from the same IP address. |