14/12/2017 - Dollar Weakens Following US Rate Hike

USD

The Federal Reserve raised interest rates by 25 basis points yesterday, as anticipated, however they left its rate outlook for the coming years unchanged even as policymakers expect a short-term increase in U.S. economic growth. The Fed projected three more hikes in each of 2018 and 2019 before a long-run level of 2.8 percent is reached, unchanged from the last round of forecasts in September.
 
The Fed also said on Wednesday it expected the nation’s unemployment rate would fall to 3.9 percent next year and remain at that level in 2019. It previously had forecast a jobless rate of 4.1 percent for those two years. But inflation is projected to remain shy of the central bank’s 2 percent goal for another year.

GBP

Prime Minister Theresa May warned rebellious lawmakers in her own party they could endanger Britain’s smooth exit from the European Union if they tried to change her Brexit blueprint later on Wednesday. May has tried to avert a rebellion in parliament by promising parliament a series of votes on any deal to leave the EU “as soon as possible”.

Members of Parliament are currently debating new laws which will repeal the 1972 legislation binding Britain to the EU and copy existing EU law into domestic law to ensure legal continuity after the UK  Exits the EU on March 29, 2019

The number of people in work in Britain fell again, suggesting employers are turning more cautious as Brexit nears, and while pay growth quickened slightly, it remained lower than inflation currently sitting just over 3%.The number of people in work fell by 56,000 during the three months to October, the most since mid-2015.

Key Announcements

12.00 – GBP – MPC Official Bank Rate Votes

12.00 – GBP – Monetary Policy Summary

12.00 – GBP – Official Bank Rate

12.45 – EUR - Minimum Bid Rate

13.30 – EUR - ECB Press Conference

13.30 – USD – Core Retail Sales MoM; Forecast at 0.7% against previous of 0.1%

13.30 – USD - Retail Sales MoM; Forecast at 0.3% against previous of 0.2%

13.30 – USD – Unemployment Claims