Fed: One more hike, but far from done - Rabobank

Sandeep Kanihama FXStreet Contributor

Analysts at Rabobank explain that the FOMC raised the target range for the federal funds rate by 25 bps to 1.50%-1.75% and there were no dissents, which is illustrative of the more hawkish composition of the FOMC in 2018.

Key Quotes

“The median dot for 2018 has remained unchanged at three hikes, but the mean dot did increase. Only a one-dot move in June is now needed for four 2018 hikes.”

“The changes to the economic projections were objectively speaking relatively hawkish, but they did fell short of the ramped-up market expectations going into the meeting.”

“The press conference lacked a certain degree of depth and color.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD climbs to daily highs on US CPI

EUR/USD now accelerates it rebound and flirts with the 1.1880 zone on Friday, or daily highs, all in response to renewed selling pressure on the US Dollar. In the meantime, US inflation figures showed the headline CPI rose less than expected in January, removing some tailwinds from the Greenback’s momentum.

GBP/USD clings to gains above 1.3600

GBP/USD reverses three consecutive daily pullbacks on Friday, hovering around the low-1.3600s on the back of the vacillating performance of the Greenback in the wake of the release of US CPI prints in January. Earlier in the day, the BoE’s Pill suggested that UK inflation could settle around 2.5%, above the bank’s goal.

Gold: Upside remains capped by $5,000

Gold is reclaiming part of the ground lost on Wednesday’s marked retracement, as bargain-hunters seem to have stepped in. The precious metal’s upside, however, appears limited amid the slightly better tone in the US Dollar after US inflation data saw the CPI rise less than estimated at the beginning of the year.