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Forex Today: Fed in no preset course, dollar down

FXStreet Team FXStreet

Here is what you need to know Thursday, October 3st:

The US Federal Reserve cut rates as expected by 25bps, while Chief Powell hinted a pause in rate cuts. The dollar initially advanced, but later collapsed, with not much of a catalyst behind it, but his comment regarding inflation, signaling significant rise needed before any rate hike. The EUR/USD pair flirted with weekly lows to later soar to the 1.1150 price zone.
The Pound found support on Brexit headlines, trading around the 1.2900 figure against the greenback. Reports made the rounds indicating that the Brexit Party is considering pulling out of hundreds of seats to boost Tories. Also, the House of Lords debated the General Election Bill, approving the first hurdle for PM Johnson’s early election bill, as expected.
US-China trade relationship: hopes that both economies will sign a deal faded after Chilean President announced the cancellation of the APEC meeting. Nevertheless, US President Trump later said that he still hopes to sign a trade agreement with Chinese President Xi Jinping next month.
AUD/USD at fresh monthly highs amid dollar’s weakness, Wall Street posted solid gains.
The Canadian dollar was the worst performer, plummeting after BOC´s left rates unchanged, and as the statement was intrinsically dovish.
Commodities seesawed between gains and losses, recovering from daily lows yet holding near weekly lows.

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FXStreet Team

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