Foreign Exchange Rates - GBP USD Rate Up Following Federal Reserve Statement
6 Apr 2011 at 8 AM - Written by John Cameron
The Pound Dollar exchange rate (GBP/USD) is 1.6352. The Euro Dollar exchange rate (EUR/USD) is 1.4287.
The Federal Reserve voted to maintain US monetary policy at current levels when they met last night. This means that interest rates stay at a record low of 0-0.25% and the current asset purchase scheme remains on track for its June completion date.
The Minutes which accompanied the Fed’s announcement showed that although all ten committee members voted unanimously to maintain the status quo, opinion was divided on the shape that monetary policy should take for the remainder of 2011, with several members suggesting that a tightening in policy might be necessary towards the end of the year.
However, the consensus was that domestic inflation remained under control and that the US economic recovery remained on track. This was a slightly more dovish line than many analysts had expected following recent comments by Fed members which suggested that the days of easy monetary policy in the States were nearing an end.
The market reacted to the minutes by selling off the US Dollar in moderate volume. This has caused the GBP/USD and EUR/USD rates to once again approach their near-term highs.
Elsewhere, in commodities markets, the price of a barrel of Brent Crude Oil reached a new 30 month high during yesterday’s session, breaking above $121, as oil workers in Gabon went on strike. Improved economic data in the US and a near-cessation of Libyan production have also contributed to drive oil higher.
Ordinarily, top-of-the-range oil prices would have caused significant support for the Norwegian Krone and the Canadian Dollar. However, NOK and CAD gains failed to materialise as the rise in oil prices was off-set by a surprise 0.25% interest rate rise by the People’s Bank of China during yesterday’s Asian session. This has cast doubt on future levels of demand for crude as China appears determined to dampen domestic price pressures, even if the cost is reduced industrial output.
STORY LINK Foreign Exchange Rates - GBP USD Rate Up Following Federal Reserve Statement
Foreign Exchange Rates - GBP USD Rate Up Following Federal Reserve Statement
The Federal Reserve voted to maintain US monetary policy at current levels when they met last night. This means that interest rates stay at a record low of 0-0.25% and the current asset purchase scheme remains on track for its June completion date.
The Minutes which accompanied the Fed’s announcement showed that although all ten committee members voted unanimously to maintain the status quo, opinion was divided on the shape that monetary policy should take for the remainder of 2011, with several members suggesting that a tightening in policy might be necessary towards the end of the year.
However, the consensus was that domestic inflation remained under control and that the US economic recovery remained on track. This was a slightly more dovish line than many analysts had expected following recent comments by Fed members which suggested that the days of easy monetary policy in the States were nearing an end.
The market reacted to the minutes by selling off the US Dollar in moderate volume. This has caused the GBP/USD and EUR/USD rates to once again approach their near-term highs.
Elsewhere, in commodities markets, the price of a barrel of Brent Crude Oil reached a new 30 month high during yesterday’s session, breaking above $121, as oil workers in Gabon went on strike. Improved economic data in the US and a near-cessation of Libyan production have also contributed to drive oil higher.
Ordinarily, top-of-the-range oil prices would have caused significant support for the Norwegian Krone and the Canadian Dollar. However, NOK and CAD gains failed to materialise as the rise in oil prices was off-set by a surprise 0.25% interest rate rise by the People’s Bank of China during yesterday’s Asian session. This has cast doubt on future levels of demand for crude as China appears determined to dampen domestic price pressures, even if the cost is reduced industrial output.
TAGS: American Dollar Forecasts Canadian Dollar Forecasts Daily Currency Updates Norwegian Krone Forecasts Pound Canadian Dollar Forecasts Pound Dollar Forecasts Pound Sterling Forecasts
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