USD 
EUR 
GBP
It's been a pretty quiet day in the markets, but if you were watching the British Pound, you'd have noticed it pared some of its earlier losses and edged up by 0.08% amid reports that the US and Iran reached a deal, pending confirmation from US President Donald Trump. Honestly, it was pretty surprising to see the Pound move like that, given the lack of other major news. And the Euro didn't do much of anything, just hovering around its current levels. But hey, that's just the way it goes sometimes.
But the real story of the day was the comments from St. Louis Federal Reserve President Alberto Musalem, who said that rate hikes may be needed if inflation doesn't ease. That's a pretty big deal, and it's got traders talking. According to ForexLive, the Atlanta Fed GDPN estimate for Q2 growth comes in at 3.8%, which is a pretty strong number. And with the Fed still talking about potential rate hikes, it's no wonder the US Dollar is holding steady. The US Dollar / Mexican Peso is still at 17.3426, and the British Pound / US Dollar is at 1.3432. But if you were looking at the British Pound / Yen, you'd have seen it holding at 213.8751, which is pretty interesting given the yen's weakness lately.
And it's not just the Fed that's got traders worried - ABN AMRO is highlighting a more dovish tone from the MPC, and they're still expecting an insurance rate hike over the summer. But with the economy still growing strong, it's hard to say what's going to happen next. The Euro / Yen is still at 185.4963, which is a pretty key level to watch. FXStreet pointed out that the St. Louis Fed President's comments were a big deal, and they're expecting more volatility in the coming days. But for now, it's just a waiting game.
So what's coming next? Well, we've got some medium-impact economic events on the horizon, including the Current Account and Durable Goods Orders Ex Transp. And with the Fed still talking about rate hikes, it's going to be a wild ride. But hey, that's just the way it goes in the markets. We'll just have to wait and see what happens next.
Fed Fears Drive Volatility
But the real story of the day was the comments from St. Louis Federal Reserve President Alberto Musalem, who said that rate hikes may be needed if inflation doesn't ease. That's a pretty big deal, and it's got traders talking. According to ForexLive, the Atlanta Fed GDPN estimate for Q2 growth comes in at 3.8%, which is a pretty strong number. And with the Fed still talking about potential rate hikes, it's no wonder the US Dollar is holding steady. The US Dollar / Mexican Peso is still at 17.3426, and the British Pound / US Dollar is at 1.3432. But if you were looking at the British Pound / Yen, you'd have seen it holding at 213.8751, which is pretty interesting given the yen's weakness lately.
And it's not just the Fed that's got traders worried - ABN AMRO is highlighting a more dovish tone from the MPC, and they're still expecting an insurance rate hike over the summer. But with the economy still growing strong, it's hard to say what's going to happen next. The Euro / Yen is still at 185.4963, which is a pretty key level to watch. FXStreet pointed out that the St. Louis Fed President's comments were a big deal, and they're expecting more volatility in the coming days. But for now, it's just a waiting game.
So what's coming next? Well, we've got some medium-impact economic events on the horizon, including the Current Account and Durable Goods Orders Ex Transp. And with the Fed still talking about rate hikes, it's going to be a wild ride. But hey, that's just the way it goes in the markets. We'll just have to wait and see what happens next.