No changes out of the Fed communication yesterday as the committee concluded its 2-day policy meeting. No rate changes were really expected but the Fed stepped-up talk of stronger economic growth and labour markets and in the process heightened the already existing expectations for an end-of-year rate hike.
The USD is currently pulling-off from last Friday’s 3 ½ month highs as the much awaited US tax bill will be delayed by one day.
The British Pound is looking stronger against the weaker USD but is less convincing against the euro. Today the GBP looks on to some high impact data, the BoE rate decision and Asset Purchases Target. Expectations are pointing towards a rise in interest rates from the British Central Bank – it would be the first rise since July 2007.
Earlier on today’s economic docket we also have German Unemployment Change, BoE inflation report and later today President Trump is also expected to nominate the next Fed Chair.
