The FOMC increased interest rates by 25bps yesterday, while the updated “dot plot” suggested that policymakers continue to see 3 more hikes in 2018. Today, the central Bank torch is passed to the BoE and the ECB. Both the Banks are expected to stand pat, so focus will be on future policy signals.
The Dollar Tumbles Even After the Fed’s Hike
The dollar traded lower yesterday against all its major rivals. Its slide started after the US CPI data showed that core inflation slowed in November, and continued to drift lower even after the Fed decided to raise interest rates. The biggest winner was AUD, which surged after Australia’s employment data showed that employers took much more workers than the forecast suggested.
Read the full financial markets daily report on JFD Research.