US DOLLAR, FEDERAL RESERVE, FOMC, POWELL – Speaking Factors:US Dollar sharply decrease after the Fed alerts pause in charge minim
US DOLLAR, FEDERAL RESERVE, FOMC, POWELL – Speaking Factors:
- US Dollar sharply decrease after the Fed alerts pause in charge minimize cycle
- Shares up, sentiment buoyed regardless of much less scope for near-term easing
- Bond yield drop suggests FOMC is revisiting dovish pre-commitment
The place will markets finish 2019? See our Q4 forecasts for currencies, commodities and stock indexes!
The US Dollar seesawed because the Federal Reserve shifted into wait-and-see mode having issued its third charge minimize of 2019 on October 30. The coverage assertion conspicuously dropped the pledge to “act as applicable to maintain the growth” – a nod to pausing the speed minimize cycle. Fed Chair Jerome Powell then modified the phrase within the post-meeting presser, saying present coverage setting is “more likely to stay applicable”.
The Dollar acknowledged the speed minimize pause with a modest rise, then plunged. The transfer decrease was accompanied by a rally within the bellwether S&P 500 inventory index, implying an enchancment in underlying threat urge for food throughout monetary markets. At first blush, that appears to mark a notable departure from current dynamics, the place prospects for extra stimulus produced risk-on outcomes whereas hesitation soured sentiment.
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