Home Daily Commentaries FOMC minutes in focus to gauge US interest rate outlook

FOMC minutes in focus to gauge US interest rate outlook

Daily Currency Update

The US dollar predominantly traded within a narrow range this morning against a basket of currencies, with its value still under pressure due to cautious remarks from the Federal Reserve. Traders are eagerly anticipating the release of the central bank's policy meeting minutes later in the day, hoping for additional insights into the Fed's stance on future interest rate increases.

A series of statements from various Federal Reserve officials over the past few days have suggested that the central bank may not need to implement as many interest rate hikes as previously anticipated.

Key Movers

According to the International Monetary Fund (IMF), the United Kingdom is poised to exhibit the slowest economic growth among the G7 nations in the upcoming year. The IMF's most recent World Economic Outlook (WEO) anticipates that the UK's economy will expand by a mere 0.6% in 2024, a significant reduction from the previous estimate of 1% growth.

The current year is also expected to witness a deceleration in the UK's Gross Domestic Product (GDP) growth, with a forecasted rate of 0.5%, marking a substantial slowdown compared to the 4.1% growth recorded in 2022.

Expected Ranges

  • GBP/USD: 1.2235 - 1.2325 ▲
  • GBP/EUR: 1.1545 - 1.1595 ▲
  • EUR/USD: 1.0535 - 1.0625 ▼