- Analytics
- News and Tools
- Market News
- USD: Dollar becomes vulnerable after last Fed cut – ING
USD: Dollar becomes vulnerable after last Fed cut – ING
The Fed cut rates by 50bp yesterday, which came more as a surprise to economists' consensus than for markets, which had priced around a 65% probability of a half-point move. There was a substantial revision in the Dot Plot projections too, ING’s FX strategist Francesco Pesole notes.
FOMC caused volatility at the FX market
“The initial reaction in the FX market was markedly negative for the USD across the board, with the Yen (JPY), Norwegian krone (NOK) and New Zealand dollar (NZD) rallying around 1% and the Canadian dollar (CAD) unsurprisingly lagging other G10 currencies. By the time Powell’s conference had ended, those moves had been entirely unwound.”
“We have continued to observe higher FX volatility in the Asian session. After a brief overnight USD rally, we are largely back to pre-announcement levels in G10, with only JPY standing out as moderately weaker and the AUD moderately stronger following robust Australian jobs figures.”
“Ultimately, we see more room for markets to build speculative USD shorts into the US election, especially considering the USD-negative candidate (Kamala Harris) continues to fare quite well in post-debate polls.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
