email:  
 
 
  
 

Wednesday, March 29, 2006

GBP/USD The First Quarter

As expected, the Fed raised rates by a quarter-point to 4.75%, making it the 15th consecutive 25 basis-point rise. More importantly, the commentary noted that higher rates may be needed going forward. Yesterday's relatively unguarded statement caught Euro bulls by surprise, and precipitated a Euro sell-off in the face of a brisk Dollar rally. With further rate support implied in the commentary, Fed watchers have set their sites on U.S. rates surpassing 5% during the summer, with the likelihood of a further move in May close to 100%. Read More....