The dollar gained yesterday, even after the Fed revised down its 2019 median dot to suggest 2 hikes, instead of 3 as was the case in September. The Committee appeared less dovish than investors may have expected, which hurt the broader market sentiment as well. The commodity-linked currencies NZD and AUD were the worst G10 performers, and equity indices tumbled. As for today, it’s the turn of the BoE and the Riksbank to decide on policy. We expect both Banks to stand pat, although given its guidance, there is the chance for a hike by the Riksbank.
Fed Revises Down 2019 Dots, But USD Strengthens
The dollar traded higher against most of the other G10 currencies, with NZD and AUD leading by far the losers’ list. The greenback traded virtually unchanged, within a ±0.10% range, against EUR and JPY.
Although the dollar did not end the day significantly higher against its major peers, except NZD and AUD, its ride was not a quiet one. The currency was trading on the...
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