USD declines as the Federal Reserve signals a pause in tightening
Daily Currency Update
The US dollar declined against most major currencies this morning as the Federal Reserve suggested a pause in its tightening cycle, the markets were also hit by a rout in regional US bank shares as the banking crisis continues. Shares of PacWest and several other U.S. regional lenders had tumbled in after-market trading on Wednesday.The Fed on Wednesday raised its benchmark overnight interest rate by a quarter of a percentage point, as expected, but in doing so dropped from its policy statement language that it "anticipates" further rate increases would be needed.
Key Movers
The European Central Bank meets later today and is expected to raise rates. It will be a seventh rate rise for the ECB, the central bank for a 20-country zone whose headline inflation is 7% and that has so far dismissed the ongoing banking crisis in the US.Expected Ranges
- GBP/USD: 1.2515 - 1.2585 ▲
- GBP/EUR: 1.1345 - 1.1395 ▲
- EUR/USD: 1.0985 - 1.1075 ▼