Forex Analysis for Thursday 2nd February 2017
The Fed was seen as mildly dovish:
The Fed kept rates unchanged at 0.50%-0.75% as expected. The Fed stated that market based measures of inflation compensation remain low and most survey based measures of longer term inflation expectations are little changed on balance. The Fed also said that the Committee is maintaining its existing policy of reinvesting principal payments in order to maintain accommodative financial conditions.
In the UK PM May’s Article 50 law passed by 498 votes to 114.
The USD continues down and US equities consolidate. The GBP erased its losses and UK equities continue to move sideways just above the 50MA. The EUR consolidates and the Euro50 maintains its position between short-term support and the 50MA. Both the JPY and the Japan 225 consolidate. Oil stays within its range.
Today sees UK BoE Inflation Report, Bank Rate, Asset Purchase Facility and Monetary Policy Summary.
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