The Pound has moved marginally higher against the US Dollar ahead of the FED’s Interest rate decision this afternoon, with it looking likely from a markets perspective that they will hold rates as they are.
With the FED looking to pause their cycle, markets will listen out for an indication on what future plans may be alongside the views on how Trumps new proposed tariff plans and how that looks for monetary policy and inflation as a whole. Governor Jerome Powell will deliver his speech after the rate decision in which markets will pay most attention to for the clues and thoughts.
Volatility will remain, with it being heightened around the announcement, with traders poised to act on anything not already priced in.
Australian inflation data came in subpar, seeing gains made against the Australian Dollar, with Sterling at the forefront.
Following the print markets readjusted the probability of the Royal Bank of Australia cutting interest rates up above 90%, whereas before the figures it was priced in just under 80% hence the sell off and advances seen across the board.
Markets general consensus is that we would see a 25 basis point cut in February, however this may not be the case so traders still remain cautious.
-Oakleigh Exchange Partners-