The dollar gained against all but one of its major counterparts after the Fed cut rates by 25bps as was expected, but appeared divided with regards to its future course of action. The only currency which managed to outperform the greenback was the yen, which coming under strong buying interest after the BoJ kept its ultra-loose policy and its forward guidance unchanged, disappointing those who have been expecting a more dovish stance.
Fed Cuts Rates, but Stays Divided on Future Action
The dollar traded higher against all but one of the other G10 currencies on Wednesday and during the Asian morning Thursday. It gained the most versus AUD, SEK and NZD in that order, while the currency against which it lost some ground was JPY.
Yesterday, the main event for USD-traders was the FOMC monetary policy decision. The Committee decided to lower interest rates by 25bps as it was mainly anticipated, with...
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