Us dollar soars on hawkish federal reserve

FX markets last week fully validated our view. Currency in great britain and europe The actual interest rate hike from the Fed was a non-event, as it was fully expected. Currency gbp graph However, the ‘dot plot’ communicated to markets that the Fed expects to raise rates considerably faster than it did back in September. Decimal currency in britain The US Dollar soared on the news, and it ended the week up against every single G10 currency.

Great britain pound currency The biggest drop was recorded by the Yen, as the traditional relationship between the USD/JPY rate and US interest rates reestablish itself. Currency in england converter The Euro is also now very close to our target for the end of 2016. Currency of britain The news calendar is very light until January, and FX markets traditionally quiet down in the last half of December over the Christmas holidays. Great britain currency denominations We do expect the US Dollar rally to continue into the first half of 2017, and break parity with the Euro not long after New Years. What currency does england use The basis of this view is that US interest rates still have some way to rise before they are in sync with the views of the Federal Reserve, while there is no chance of higher interest rates in Europe at least into 2018. Great britain currency code Major currencies in detail: GBP Sterling-positive news last week enabled the Pound to hold its own better than most other major currencies amid the strong US Dollar rally. Great britain money currency The Bank of England again sounded a more hawkish note than markets had expected, and retail sales provided yet another upside economic surprise. Currency exchange great britain Our view that the Bank of England’s next move in rates will be up, although not for quite some time, is fully validated and we think Sterling’s rally against the Euro still has legs. Currency gbp chf EUR The business confidence indices in Europe continue to recover and point to better growth in the months ahead. What currency does britain use The combination of ultra-lax monetary policy from the ECB and currency depreciation will, in our view, continue to provide a much-needed tailwind for the economies of the Eurozone. Currency in great britain However, for the next few months, currency moves will be driven by interest rate differentials, so this better economic backdrop is not quite enough for us to change our Euro-bearish view quite yet. Great britain currency to usd Nonetheless, the better tone in the Eurozone economy over the past few months certainly has bears watching. Currency system introduced in britain in 1971 USD As universally expected, the FOMC increased the overnight interest rate by 0.25% in a unanimous decision. Currency of great britain It also validated our expectations for a hawkish turn in its expectations relative to the September meeting. What is the currency of great britain The FOMC member projection according to the ‘dot plot’ is now for three hikes in 2017, versus just two in September. Great britain currency symbol There were also modest upward revisions to growth and employment projections. What currency does uk use Figure 1: FOMC December ‘Dot Plot’