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The Fed pushes back on interest rate cuts

BoE interest rate decision and meeting due in under 2-hours..

The Dollar is on the march today after the Federal Reserve announced last night that it's too early to consider cutting interest rates. 'It is better to wait for further data before loosening monetary policy' was the view of Fed Chair Powell, in what was a neutral stance in tone.

The chances of a rate cut in March for the US is now looking very unlikely and this has strengthened the USD. Stock markets were in retreat mode after the press conference and with the US economy not showing any signs of weakness currently, we could see higher for longer rates in the US.

GBP v USD has lost 0.5% on the news, but this could easily be clawed back later today IF the BoE signal no immediate intention to cut interest rates in the UK. GBP v EUR is riding high still, even with a surprise uptick in EU core inflation today. Over to the BoE this afternoon for expected market volatility..