Forex Today: Dollar down as Fed is in no rush to taper

Valeria Bednarik FXStreet

What you need to know on Thursday, July 29:

The dollar edged lower after the US Federal Reserve announced its decision on monetary policy. As widely anticipated, they left rates and the financial support programs unchanged. However, the statement was more optimistic than anticipated as it showed that "the economy has made progress toward these goals, and the Committee will continue to assess progress in coming meetings."

Powell was also cautious, and about tapering, he noted that policymakers discussed some details but that it will take a few more meetings to get into it. US policymakers are in no rush to taper, and it was quite clear within Powell’s statement.

Stocks moved off intraday lows but closed mixed. The DJIA lost 127 points, the S&P 500 remained unchanged, while the Nasdaq advanced 102 points. Government bond yields edged lower with that on the 10-year US Treasury note settling at 1.22%.

The EUR/USD pair trades at fresh weekly highs near 1.1850, while GBP/USD retook the 1.3900 level. The CAD was the strongest, down to 1.2515, while the AUD was the weakest, holding below the 0.7400 mark. Yields and equities weighed on USD/JPY which settled below 110.00.

Gold recovered from an intraday low at 1,972 to settle at $1,806.60 a troy ounce. Crude oil prices remained stable and posted modest gains, with WTI settling at $72.30 a barrel.

Shiba Inu Price Prediction: SHIB is dead money below $0.00000733

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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