Will the FOMC drop 8216 patient 8217 from the statement

The pound is set for a popular day, with data releases throughout affecting the GBP/USD. We start off early this morning with average earnings expecting to […]


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By :  ,  Financial Analyst

The pound is set for a popular day, with data releases throughout affecting the GBP/USD. We start off early this morning with average earnings expecting to rise to 2.2% from 2.1%, which is key to a rate rise being on the table if we see more of an increase.

The MPC votes will be in as well with no change expected at 0-0-9. This will show a unanimous decisions to hold rates, in addition to a unanimous vote to keep asset purchases at the same levels, 0-0-9.

To finish off the morning data the unemployment rate is expecting to fall from 5.7% to 5.6%, so in expectations we should be seeing a confident pound – however, yesterday proved a tough day as it fell from highs of 1.4840, as we await the data this morning. The annual budget is also to be released today so will likely keep the GBP on its toes for any announcements.

The FOMC statement and federal funds rate is to be released later tonight, and with the rate due to stay the same we look towards the comments from the FOMC and mainly the anticipated drop of ‘patient’ in the text. If, as excepted, this comes off it means we could be only a matter of months away from the first rate lift in the US. This could signal a very volatile time for the USD during this period.

 

 

EUR/USD
Supports
 1.0550-1.0500-1.0450 | Resistance 1.0650-1.0700-1.0750

 

 

USD/JPY
Supports  
121.15-120.90-120.70 | Resistance 121.55-121.75-121.95

 

 

GBP/USD
Supports  1.4700-1.4650-1.4575  | Resistance 1.4820-1.4900-1.4950

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