The dollar tumbled against all the other G10 currencies yesterday after the Fed kept its monetary policy unchanged but opened the door to lower interest rates. Overnight, the BoJ stood pat as well, keeping its forward guidance untouched. As for today, the central bank torch will be passed to the Norges Bank and the BoE. We believe that Norwegian policymakers are likely to hit the hike button today, while with regards to the BoE, we expect it to stay on hold and keep its outlook for an ongoing tightening unchanged.
Fed Keeps Rates Steady, but Opens the Door to Decreases
The dollar traded lower against all the other G10 currencies on Wednesday and during the Asian morning Thursday. It fell the most against CAD, NOK, CHF and GBP in that order, while the currency against which the dollar underperformed the least was AUD.
Responsible for the greenback’s tumble was the FOMC. The Committee decided to keep interest rates unchanged yesterday, within the 2.25-2.50% range, but the decision was not...
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