The US Dollar experienced a broad sell-off across the board as the Federal Reserve opted to stand firm on policy at its meeting's conclusion yesterday. Speaking at the press conference, Fed Chairwoman, Janet Yellen noted that recent global developments had put downward pressure on inflation. She further remarked that the US Dollar appreciation was putting a net drag on the exports sector while maintaining that the effects of lower crude oil prices were still 'transitory'. The Fed however believed that a rate hike this year was imminent. The staff economic projections showed that the Fed funds rate was revised lower by 0.25%, showing that there is a possibility of the Fed funds target range to be between 0.25 - 0.50% by end of 2015. EURUSD rallied by 1.24% yesterday after the FOMC event to close at 1.1428 before easing back lower in today’s early trading session.
Fed Holds Rates Steady
Daily Analysis - 18/09/2015