US Federal Reserve

The Dollar was broadly weaker in the wake of the Federal Reserve's July decision to raise interest rates by 25 basis points and signal that any further rate hikes would be entirely dependent on the nature of incoming data.

GBPUSD remains subject to a bullish technical outlook according to a new analysis from City Index, the retail trading institution, in a call that offers some context to the recent pullback and consolidation.

The U.S. Dollar rebounded with a vengeance over the course of the midweek session, taking value from the Pound, Euro and all other G10 peers, and setting itself up for a strong finish to what has been a mixed first half of 2023.

GBPUSD retreated from earlier highs after the Federal Reserve said it would leave its base interest rate unchanged at 5-5.25%, as expected.

Most U.S. Dollar exchange rates slipped lower in the penultimate session of the week after the Federal Reserve (Fed) raised interest rates and broadened its options in relation to future policy decisions but this and multiple other factors mean that analyst and economist views on the outlook are more nuanced than market prices might imply. 

Deepening losses for the Dollar lifted the Pound to Dollar exchange rate to almost 1.26 late in midweek trade after the Federal Reserve (Fed) raised its interest rate but stopped short of suggesting that further increases are likely to be announced over the coming months.

The Canadian Dollar gave way to most other comparable currencies in midweek trade after the Institute for Supply Management (ISM) offered further signs of the Federal Reserve having success in wrestling down U.S. inflation, leading to a continued underperformance of North American currencies and further large declines for oil prices. 

The Pound to Dollar exchange rate lifted Sterling to the top of the major currency league table last week but could rise further toward roughly 1.2690 up ahead if last week's economic figures lead the Federal Reserve (Fed) to take a rain cheque on a widely anticipated interest rate step this Wednesday. 

The Pound to Dollar exchange rate rallied to retest one-year highs in the final session of the week after official data suggested the Federal Reserve (Fed) is nearing dry land in its battle against U.S. inflation, stoking uncertainty about next Wednesday's interest rate decision.

The Euro to Dollar exchange rate unwound some of its earlier gains in the final session of the week when poor U.S. retail sales figures were followed by remarks from Governor Christopher Waller suggesting the Federal Reserve (Fed) interest rate could rise further over the coming months.

The Pound to Dollar exchange rate pared earlier losses to trade buoyantly near the year's highs ahead of the weekend after the Federal Reserve's (Fed) preferred inflation measure fell further than was expected in the latest update, curbing a corrective rebound by the greenback.

U.S. exchange rates were mostly underwater for the period in the final session of the week after the Federal Reserve (Fed) suggested that its interest might rise by less than was previously thought once all is said and done, leading some analysts to anticipate further declines for the Dollar up ahead. 

The Pound, Euro and other major currencies rose against the Dollar in an initial response to the Federal Reserve's decision to raise interest rates by 25 basis points.

The Euro to Dollar exchange rate has bounced sharply from the year's lows in recent trade but the balance of directional risk remains tilted to the upside ahead of Thursday's European Central Bank (ECB) interest rate decision owing in part to a sharp repricing of the Federal Reserve (Fed) policy outlook. 

The high-profile failures of some small U.S. lenders and the resulting federal effort to prevent panic among depositors elsewhere have led financial markets to revise their outlooks for the Federal Reserve (Fed) interest rate while prompting analysts and economists to reconsider their forecasts.  

Investment bank Nomura is one of the first major investment banks to come out and say the Federal Reserve will cut interest rates next week in light of recent stresses in the U.S. banking system.

GBP/USD fell to its lowest level since January 06 following comments from the Chair of the Federal Reserve, Jerome Powell.

January's Core Personal Consumption Expenditures (PCE) Price Index was potentially an early warning of a nightmare scenario being in the pipeline for policymakers at the Federal Reserve (Fed) but analyst and economist views on the outlook for interest rates and the Dollar inevitably remain far from uniform.

The Pound to Dollar exchange rate came under pressure near 1.20 in the penultimate session of the week as financial markets mulled upside risks to Federal Reserve (Fed) and Bank of England (Fed) interest rates, the relative balance of which is potentially a constraint on Sterling's recovery prospects. 

The pending departure of Vice Chair of the Federal Open Market Committee (FOMC) Lael Brainard is one further potentially hawkish development in the outlook for Federal Reserve interest rates that could have supportive implications for the U.S. Dollar in the weeks ahead.