Forex Today: Dollar surrenders post-Fed gains, Aussie and Bitcoin tumble, BOE in focus


Here is what you need to know on Thursday, September 19:

  • The US dollar is off its highs against major pairs as markets digest the Federal Reserve's decision. The Fed cut rates by 25 basis points as expected and the dot-plot signaled no further cuts this year or the next. Chair Jerome Powell conveyed a balanced message of doing what is necessary according to data on "meeting by meeting" basis. Gold has also recovered and is trying to recapture $1,500.
  • The Bank of Japan left its interest rate unchanged at -0.10%  and did not introduce additional measures. The yen strengthened as the BOJ is not matching its peers with further stimulus.
  • The Bank of England is set to leave its policy unchanged with interest rates at +0.75%. While wage growth has accelerated, inflation has decelerated. Uncertainty about Brexit paralyzes policymaking. A unanimous voting pattern is on the cards. Speculation about a potential extension of Governor Mark Carney's term will probably not be addressed in this decision.  UK retail sales are due out just before the decision.
  • The Swiss National Bank (SNB) is set to leave its Libor Rate at -0.75%. The Swiss franc has weakened in recent weeks after seeing safe-haven flows earlier. 
  • The Australian dollar has lost ground and dipped below 0.68 after the unemployment rate rose to 5.3%. However, the economy gained more jobs than expected and the participation rate has risen.
  • The New Zealand dollar has stabilized after second-quarter GDP beat expectations with 0.5% QoQ. Annual growth is slowing down. 
  • Oil prices have consolidated their losses with WTI Crude Oil trading around $58. Saudi Arabia sounded confident about restoring oil output following the weekend attack on its installations. US President Donald Trump has announced new sanctions on Iran, the alleged perpetrator of the attack, in a move that probably averts war.
  • The US economic calendar features the Philly Fed Manufacturing Index, Jobless Claims, and Existing Home Sales. These second-tier figures may impact currencies if they all go in the same direction.
  • Bitcoin fell below $10,000 and carried other cryptocurrencies lower. Ethereum and Ripple had previously gained ground.
     

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD nears weekly highs as risk-on returns

The EUR/USD pair was dragged higher by a soaring Pound, now hovering around 1.1040. The market is all about sentiment, and this last dependent on Brexit and the US-China trade relationship.

 

EUR/USD News

GBP/USD pulls back from multi-month top amid mixed Brexit news

With Brexit tensions on paramount, GBP/USD awaits confirmation of recent rally while taking a step back to 1.2760 amid the initial Asian trading session on Wednesday. DUP, Tory and Irish members seem to dislike the UK PM’s Brexit deal.

GBP/USD News

USD/JPY in search of a firm direction, stuck in a range below mid-108.00s

The prevalent risk-on mood weighed on the JPY’s safe-haven status and extended support. A sharp fall in the US bond yields undermined the USD and failed to impress bullish traders.

USD/JPY News

Gold slumps to $1,480 area on Brexit hopes

The troy ounce of the precious metal continued to weaken in USD terms in the American trading hours as markets cheered reports claiming that the European Union (EU) and the United Kingdom (UK) are closing in on a draft Brexit deal that could be announced before the end of the day on Tuesday.

Gold News

Cryptos: Incumbents don't know to play well

The Libra project led by Facebook remains on track despite the first defections. Those who have abandoned the project are mostly payment gateways. Bitcoin's lack of tone weighs on Ethereum's mood.

Read more

Forex MAJORS

Cryptocurrencies

Signatures