US dollar declines following FOMC members comments
Daily Currency Update
The US dollar experienced a decline this morning, driven by diminishing expectations of higher US interest rates. Investors perceived a subtle shift towards a more dovish stance among Federal Reserve officials. This shift in sentiment occurred after comments from two Fed officials indicated that the recent bond sell-off might eliminate the necessity for additional interest rate hikes in the United States.US interest-rate futures markets are indicating a significant likelihood of rate reductions in 2024. This week, attention will be centred on the release of the FOMC minutes, and the US consumer inflation data scheduled for Wednesday and Thursday.
Key Movers
Yesterday, GBP strengthened against the US dollar. One of the contributing factors to the pound's ascent was the decreased trading activity due to the holiday, especially notable in the US fixed-income markets. This was because the US Treasury markets were closed in observance of both Columbus Day and Indigenous Peoples' Day.Expected Ranges
- GBP/USD: 1.2185 - 1.2255 ▼
- GBP/EUR: 1.1535 - 1.1595 ▲
- EUR/USD: 1.0525 - 1.0585 ▼