NEWS / Foreign Exchange

Fed Meeting Preview

Fed Meeting Preview

US Government is still worried about inflation, but it's not probable that a rate hike is given on the 21st March's Meeting. The last hike was seen on June '06 when they hiked to the actual 5.25%.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

• Board of Governors of the Federal Reserve System
• View the past interest rates data on our Economic Time series
• Special Webinar: Live Coverage of FOMC US Interest Rate Announcement with Jerry Furst
• Vote now in our Forum Poll: What will Bernanke do with interest rates? or review the opinion of our expert Tony Juste at The Advisor Blog: What will the BoJ and the Fed do?

In-Depth Analysis

• Global FX Daily: European Edition - FOMC statement keenly awaited ??“ a major change of tone seems unlikely by Mellon Foreign Exchange
• Central Bank Speak - US Fed, ECB, BoJ by FXCM
• Daily Forex Commentary - Handing over the driver??™s seat by Jyske Bank
• Asia Market Update - Traders take some profits ahead of FOMC by Trade The News
• US Trading Preview - FX Awaits FOMC by Forexnews.com
• The Week Ahead - FOMC Policy Announcement by BBVA Bancomer
• Weekly Analysis - Interest rate decisions from BOJ and Fed ahead by Finotec Group Inc.
• Economic Data Roundup - 21/3 FOMC Interest rate decision by ODL Securities
• FOMC March 20-21st Meeting by BBVA Bancomer
• Forex Weekly Review and Outlook - Will FOMC and Housing Data Trigger More Dollar Weakness? by ActionForex.com
• Daily Global Commentary - Advancing Core Inflation Seals the Outcome of March FOMC Meeting by Northern Trust

Related News

• Dollar gains ground in Singapore afternoon trade as FOMC result awaited (AFX News)
• Gold holds steady as investors look to US rate verdict tomorrow (AFX News)
• FOMC Might See Fit To Throw The Markets A Life Preserver (Dow Jones)
• Dollar Rises Before Fed Meeting; Yen Falls As Carry Trade Resumes (Dow Jones)

Analysts' comments

• Ian Gunner, head of FX research at Mellon Foreign Exchange:
  "A dovish statement would be USD-negative on the face of it, but more so against the euro than the yen. Such Fed dovishness would be comforting for equities and emerging markets and could offer some support for the weak JPY argument." - Reuters
• Hideaki Inoue, chief manager of forex trading at Mitsubishi UFJ Trust and Banking Corp:
  "Depending on how the Fed words its description of the state of the economy, more position adjustments to sell the dollar may emerge." - Reuters
• Besa Deda, currency strategist at Commonwealth Bank:
  "In the previous statement on Jan. 31, they (Fed) still judged that some inflation risks remained and they suggested there were some tentative signs of stabilisation in the housing market. It will be really those two sentences that will be closely watched, particularly any remarks on the housing market." - Ninemsn
• Korman Tam, currency strategist at Forexnews.com:
  "The Fed is widely expected to leave monetary policy unchanged this week when it announces its decision on Wednesday, holding rates steady at 5.25%. The subsequent Fed statement will be analyzed for the Board??™s sentiment of the housing market, specifically its thoughts on risk stemming from subprime lending. Further, the FOMC??™s outlook for inflation and economic growth will provide clues on the timing of any interest rate changes over the coming months. We continue to maintain the Fed??™s next decision will be a reduction in its benchmark-lending rate, materializing in Q4." - Forexnews.com