During its latest Open Market Committee decision, the US Federal Reserve noted the pervasive weakness in US inflation more explicitly than its previous statement. The Central Bank indicated that inflation was “running below 2.00%,” compared to the June statement, where it said inflation was “running somewhat below 2.00%.” The Central Bank’s recognition of softer inflation, which it had previously judged as transitory, added to investor expectations that any plan to hike rates a third time this year might be delayed.
As was widely expected, the Fed kept interest rates unchanged while also hinting that it would start winding down its bond holdings “relatively soon.” USDCHF was last seen around the 0.9510-mark, with the pair in a strong intermediate-term downtrend. Any dip below support at 0.9490 could unlock a fresh downturn in the pair.
US Dollar Comes Under Renewed Pressure
Daily Analysis - 27/07/2017