11/06/2020

Dollar demand higher as Fed signal dovish outlook


USD

Wednesday evening saw the eagerly anticipated Federal Reserve press conference take place, and their economic outlook has seen investor concerns rise as the dollar strengthened against riskier currencies. It was also projected that US interest rates would likely stay near zero for the foreseeable future.

Federal Reserve policymakers predict that the US economy will shrink to 6.5% this year and the unemployment rate will be at 9.3% by the year end, fueling concerns by many that this will not be a simple v-shaped recovery for the wider global economy. This led on to Fed Chair Powell describing the path of interest rates as a “long road” and that a hike was not close to being considered.

Key announcements

13:30 – USD – Initial Jobless Claims (Jun); expected to decrease to 1550K from previous 1877K


Why choose RationalFX?

Based in the heart of London’s financial district Canary Wharf, RationalFX has traded over $10billion in currencies across the globe. Take advantage of our competitive exchange rates, market expertise, suite of FX products and online payment platform when you make bank to bank transfers in over 50 currencies worldwide.

Whatever your reason for making overseas payments, we’re confident our currency specialists can save you time and money while providing peace of mind. Call our team now on: +44 20 7220 8181