As widely anticipated, the US Federal Reserve kept interest rates unchanged yesterday. However, during the press conference, Chair Jerome Powell underscored the growing uncertainty surrounding the US economic outlook. He reiterated that the Fed is in no rush to adjust its monetary policy, suggesting a more cautious stance for the months ahead.
Market Reaction Remains Subdued
Markets responded with little fanfare. While the US dollar saw a modest uptick immediately following the Fed’s announcement, those gains were erased overnight as sentiment softened.
Euro Slips Against Major Peers
The euro came under pressure during the session, weakening by 0.4% against both the pound and the dollar. The move reflected broader market caution and relative strength in sterling ahead of today’s Bank of England meeting.
Attention Turns to the Bank of England
UK economic data for January landed broadly in line with expectations earlier this morning. The spotlight now turns to the BoE’s policy decision, where interest rates are expected to remain unchanged. However, the key focus will be the meeting statement and the voting breakdown from the Monetary Policy Committee (MPC), which could offer clues about the future direction of UK rates.
Expert Guidance in Uncertain Times
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