Fed interest rate decision today.

The Federal reserve will release its latest interest rate decision later today which will shape the foreign exchange markets for the next few weeks. The GBP also reacted to the early morning release of CPI data coming in lower than expected.

GBP (British Pound): UK CPI was released early this morning and came in lower than expected. The figure of 6.7% compared to the expected 7.1% has shown that the BoE’s previous rate hikes have been helping to combat inflation.

The lower than expected CPI numbers have caused a fall in the GBP as the likelihood of an expected rate hike from the BoE tomorrow has been thrown into question.

EUR (Euro): The EUR will be reacting off the other big releases from the GBP and USD for the majority of this week with little data releases to swing the currency itself.

Looking ahead to later this week the Euro will be heavily influenced by Fridays slate of PMI releases for the Eurozone. This will show how both the manufacturing and services sectors are performing throughout the Eurozone.

USD (United States Dollar): The USD will take centre stage today with the Fed’s interest rate decision. With an expected hold in rates today all eyes will be on the monetary policy statement to see if they will signal another rate hike in November.

Finally, on Friday we also have PMI released for the US as well which will help to understand the overall health of the US servicing and manufacturing sectors.

Economic Calendar