- GBP / USD signs for a weaker dollar following the Fed statement.
- Markets will now listen to Fed Chairman Powell.
The pair GBP/USD came under pressure as the US dollar strengthened following the Federal Reserve’s interest rate decision and declaration.
However, the market is frivolous and from a low of 1.3889, GBP / USD is currently trading above 1.3900. The range for the day so far has been between 1.3860 and 1.3923.
The release has said that the Fed will continue to increase bond purchases by at least $ 80 billion / month of Treasuries, $ 40 billion / month of MBS until “additional substantial progress” has been made on the maximum employment targets and price stability.
Meanwhile, the benchmark interest rate was unchanged with the target range of 0.00% – 0.25%, with the interest rate on excess reserves also unchanged at 0.10%.
Markets will now wait for the press where Fed Chairman Jerome Powell is expected to maintain the status quo in rhetoric.
That said, markets are beginning to look for signs of downsizing and Powell will surely be asked about the timing.
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