FX Outlook

Interesting news from the Federal Reserve last evening.

From next month, the Fed will start to decrease the size of its $4.2 trillion portfolio, which was acquired during periods of quantitative easing.

It also hinted at another rate rise at the end of December 2017.

But inflation - which is below the Fed’s target of 2% - remains a key metric to monitor. This has the potential to affect the Fed’s next intended rate rise.

Watching out for dollar rallies.

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