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Forex Rate: Pound Drops While USD rises Upon Fed Thursday Meeting

May 23, 2019 | Thursday

Forex

   

On Thursday, the British pound slipped within Asia mostly led by Brexit concerns. Meanwhile, the United States dollar moves higher upon the U.S. Federal Reserve's last meeting.

The U.S. dollar index inclines facing its major basket of currencies. It went up by 0.1 percent at 97.982 during 03:46 GMT (11:46 pm ET).

The Fed's Open Market Committee meeting from April 30 to May 1 suggests there is no large case to move rates in any direction and the Fed's patient appearance to rate changes are only appropriate at some time.

The Fed members saw the patient approach to future adjustments on a target range for the fed funds rate. That of which likely remains steady for some time. During the minute meetings, U.S.-China trade dispute also noted which will support the rates to steady for a longer time.

The FOMC, during the meeting, leave its benchmark rate policy unchanged within 2.25 percent to a 2.5 percent expected target range. The markets expect the Fed to cut interest rate at the end of the year surrounded by inflation concerns below the 2 percent target.

Meanwhile, looking at the economic outlook, a number of participants suggest their concerns regarding the early year "downside risk." That of which is mostly led by the slowing economic growth with the deterioration of financial conditions and similar concerns from the business contacts.

Elsewhere, the GBP/USD decline by 0.1 percent to a 1.2647 upon reports regarding the United Kingdom Prime Minister Theresa May resignation soon. That likely caused the chaos at pound sell-off.

On Wednesday, the prime minister suggested a revision of Withdrawal Agreement Bill to the Parliament. However, her cabinet and benchmark lawyers revolted the revised version. Other reports suggest members of parliament put pressure on the prime minister's resignation today.

   

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