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20 May 2015
US rates low for longer and new limit for Greece - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet noted that the dollar discretely extended its Tuesday's advance at the beginning of the day, but traded for the most range bound against most of its major rivals until the release of US FOMC Minutes during the American afternoon.
Key Quotes:
"The Minutes showed officials seen a rate hike in June as "unlikely," despite believing that the Q1 slowdown was unlikely to persists."
"FED's members were generally optimistic about the economic outlook, but reaffirmed that the timing for a rate hike will "be determined on a meeting-by-meeting basis and would depend on the evolution of economic conditions and the outlook.""
"Market was actually not expecting a rate hike by June, but the Minutes were seen as dovish, as a weaker USD seems to be supportive of economic growth, which means rates will remain low for longer."
"At the time of the release, news hit the wires saying that the ECB rose Greek Bank Emergency Cash by €200 million, approving a new limit of €80.2 billion, bringing some relief to EUR buyers. 36.70/00 as key resistance for 2015 so far."
Key Quotes:
"The Minutes showed officials seen a rate hike in June as "unlikely," despite believing that the Q1 slowdown was unlikely to persists."
"FED's members were generally optimistic about the economic outlook, but reaffirmed that the timing for a rate hike will "be determined on a meeting-by-meeting basis and would depend on the evolution of economic conditions and the outlook.""
"Market was actually not expecting a rate hike by June, but the Minutes were seen as dovish, as a weaker USD seems to be supportive of economic growth, which means rates will remain low for longer."
"At the time of the release, news hit the wires saying that the ECB rose Greek Bank Emergency Cash by €200 million, approving a new limit of €80.2 billion, bringing some relief to EUR buyers. 36.70/00 as key resistance for 2015 so far."