The dollar tumbled and equity indices surged yesterday after Fed officials said they will be patient with regards to future adjustments on interest rates, also noting that they would be prepared to alter the size and composition of their balance sheet if needed. As for today, investors are likely to turn their attention to the US-China trade negotiations. Although we may once again get headlines suggesting progress, we doubt a final accord could be sealed today.
USD TUMBLES AS FED OFFICIALS SIGNAL PATIENCE ON RATES
The dollar traded lower against all the other G10 currencies on Wednesday. It underperformed the most against CAD, AUD, NOK and NZD in that order, while the currencies which gained the least against the greenback were CHF, GBP and SEK.
Yesterday, it was all about the FOMC decision. The Committee kept interest rates unchanged as was broadly anticipated, but in the statement accompanying the decision, officials decided to...
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