Spotlight on Today’s US Fed Rate Decision
The US Federal Reserve (Fed) will later today raise interest rates for the first time since 2006, as strongly signalled by policymakers, including Fed Chairwoman Janet Yellen. After the meeting, market attention will quickly shift towards when the next rate increase is due. The Euro and Sterling could move south against the US Dollar after the expected policy shift is announced today.
Ahead of today’s historical Fed decision, markets just now received another snapshot of the UK economy with the release of latest wages data showing a further slowdown in earnings growth for the three months ended October. In the Euro zone, a survey earlier today indicated that manufacturing activity jumped to a 20-month high in December, but services sector underperformed expectations.