FOMC leans dovish in March

The Fed has leaned somewhat unexpectedly dovish in its monetary policy in March.

March projections

The FOMC has slightly cut GDP and PCE forecasts but significantly dropped its expectations of rate hikes in 2016 from a potential four hikes to just 2.

Dot plots March

This has seen:

EUR/USD jumping 100 pips and ould now retest the post-ECB high at $1.1217

euro fed

Gold jump through the resistance at $1247.50 to open $1260.60

gold fed

USD/JPY fall 100 pips to test 112.60, but still remains rangebound, next support at 112.15

yen fed

Let’s see if the Yellen presser will cause these dovish trades any cause to turn again.


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