Yesterday, the Fed decided to cut interest rates by 25bps, the first decrease in more than a decade, but the dollar surged and equities slid as officials ruled out a prolonged easing cycle. As for today, the central bank torch will be passed to the BoE, with investors eager to find out whether British policymakers will abandon their hiking bias.
Fed Cuts Rates, but Sounds Less Dovish than Expected
The dollar traded higher against all the other G10 currencies yesterday and during the Asian morning Thursday. It gained the most against NOK, SEK and EUR in that order, while the currency against which the greenback eked out the least gains was GBP.
What have encouraged USD-bulls to take charge (or disappointed USD-bears) was the outcome of yesterday’s FOMC decision. The Committee decided to cut rates by 25bps as...
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