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FX trade was relatively quiet on Friday, with no data to drive prices, and a fairly neutral risk backdrop. This said, the Dollar managed modest gains through the session, taking the DXY from opening lows of 98.43 to a 98.63 high. Wall Street was narrowly mixed, while Treasury yields edged a bit lower. Read more
The Dollar majors have seen some chop but, for the most part, little net directional changes. EUR-USD has settled to an orbit of the 1.1050 level, earlier printing an intraday high at 1.1067 before gravitating back below 1.1050. The pair has remained comfortably within its range from yesterday. Read more
The Dollar headed higher in N.Y. morning trade on Thursday, guided by decent incoming U.S. data. The DXY bottomed at 98.25 at the open, making its way to 98.42 after the London close. From there it was downhill, as GBP-USD and EUR-USD rallied following a report that EU commission president Junker said he thought a Brexit deal could be done by the end of October. Read more
OVERVIEW FOMC executives were divided in this week's meetings as to whether further interest rate cuts this year are justified. They did manage to pass a quarter-point reduction, however. Hong Kong's central bank followed the Fed's lead with a quarter-point interest rate reduction. Japan and Switzerland's central banks are holding their interest rates. Read more
The Dollar has traded mixed so far today, after rallying in the wake of the Fed's policy announcement. The Fed did the expected and cut the funds rate band by a quarter point to 1.75%, yet the decision came at the expense of a cohesiveness among policymakers, with the vote being 7-3 (the three dissenters is the most since 2016), with the two hawks from July, George and Rosengren, again voted for no change, while the uber-dove Bullard argued for an aggressive half point easing. Read more
The FX market was quiet ahead of the FOMC announcement in N.Y. on Wednesday, with major pairings stuck inside of narrow trading bands. Incoming U.S. data was light, with housing starts much firmer than expected. There was little market reaction, however. Read more
OVERVIEW The FOMC is expected to introduce an interest rate cut in today's monetary policy decision. PM Johnson insists the UK will leave the EU on October 31st, though equally strong statements from opposition suggest it won't happen without a deal. The Aussie and Kiwi dollars are both sinking slowly HIGHLIGHT The greenback keeps a positive tone, trading broadly higher against its major peers this morning. Read more
The Dollar majors have been holding narrow ranges so far today, with AUD-USD and NZD-USD relative outliers in showing respective declines of 0.2% and 0.3% heading into the London interbank open. USD-JPY has maintained a narrow range in the lower 108.0s and EUR-USD around the 1.1065-70 mark, consolidating after rebounding yesterday from Monday's bout of dollar-driven losses. Read more
Overall, the Dollar reversed course lower in N.Y. trade on Tuesday, with the DXY unwinding the gains seen to start the week. The Dollar index pulled back to 98.23, coming from four-session highs of 98.74 seen overnight. Position squaring ahead of Wednesday's FOMC announcement, where a 25 basis point rate hike is widely expected, was the driver of the Greenback's modest move lower. Read more
