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• Fed cuts interest rates by 25 basis points, as expected.
• Fed confirms continued QE drawdown, as anticipated.

GBP/USD faced a fresh bout of downside on the intraday level, churning after the Federal Reserve (Fed) delivered a widely anticipated 25 basis point interest rate cut on Wednesday. The Federal Open Market Committee (FOMC) met investor expectations, but a notable lack of juicy headline-generating comments prevented market flows from spiraling out of control.

The Pound Sterling (GBP) faced fresh headwinds after the Fed acknowledged it would continue to ease back on Quantitative Easing (QE) practices, with the process of drawing down the Fed’s mortgage-backed asset balance sheet into long-term Treasuries by December 1.

December rate call a threepeat?

This marks the second straight interest rate cut from the Fed, albeit with some policymakers making a mental note of a general increase in some inflationary pressures through the second half of the year, but not enough to deter another leg down in interest rates.

With a second interest rate cut confirmed and in the books, investors will immediately be pivoting into ‘rate cut watch’ mode once again, looking for a third consecutive rate trim when the FOMC gathers for another interest rate deliberation announcement on December 10.

• EUR/JPY recovers from session low but remains down on Friday
• Euro: Fed repricing supports moderate gains against US Dollar. Aqa,,
• Euro: Oil-price sensitivity and war-end effects – Commerzbank.
• British Pound: Range trade holds ahead of Q2 GDP against US Dollar – Scotiabank.
• Gold Price Forecast: XAU/USD eyes acceptance above $4,150 amid Hormuz deal hopes