The recovery in risk assets was rather snuffled out after last night’s FOMC meeting which was dovish, but a little less dovish than many had previously hoped for. The reaction from the markets was mixed and unsurprisingly volatile as both equities and the dollar fell, however the greenback has recouped its losses overnight. When you look through these mixed movements what we do know is that since December the economic data has been rather on the soft side, but despite this it’s still likely that a second hike will come in March before a pause. The problem with this is that they don’t want to make the same error that the ECB made back in 2011 under Trichet when they raised rates twice rather inexplicably in a move which was arguably a contributor to the current deflationary pressures, as well as lower commodity prices. The market is still pricing in less aggressive tightening than the Fed is suggesting and perhaps yesterday was a first sign that the Fed is moving towards the same thinking as investors. Today the focus will be on sterling as we see the first release of last year’s Q4 GDP, expected to come in at 0.5%, up from 0.4%, but the year on year is due to decline from to 1.9% from 2.1%. Sentiment towards the UK economy has been waning throughout January and GBPUSD has been on a downward spiral since the middle of 2015, rather like the stock market. Later in the day there’s European consumer confidence and then US durable goods. Further reading: EUR/USD: Trading the US Advance GDP UK GDP as expected with 0.5% – GBP/USD rises FxPro - Forex Broker FxPro - Forex Broker Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss. View All Post By FxPro - Forex Broker Daily Look share Read Next Elliott Wave Analysis on S&P500 and GBPUSD Gregor Horvat 7 years The recovery in risk assets was rather snuffled out after last night's FOMC meeting which was dovish, but a little less dovish than many had previously hoped for. The reaction from the markets was mixed and unsurprisingly volatile as both equities and the dollar fell, however the greenback has recouped its losses overnight. When you look through these mixed movements what we do know is that since December the economic data has been rather on the soft side, but despite this it's still likely that a second hike will come in March before a pause. The problem with this is… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.