Forex Today: Fed sent the dollar further lower

What you need to know on Wednesday, May 11th:

 The dollar ended the day lower against most major rivals,  weaker against safe-haven rivals after a dovish US Federal Reserve. Equities initially rallied with the news but turned lower as Powell offered a speech, ending the day in the red.

The central bank left the benchmark interest rate unchanged at 0%-0.25% as widely expected.  Among other things, the statement showed that policymakers will continue to buy Treasuries and mortgage-backed securities “at least at the current pace” over the coming months. The dot-plot showed that rates will remain at current levels until 2022.  Powell reiterated that the central bank is ready to use its full range of tools to support the US economy. The GDP is seen falling by 6.5% this year, yet rising 5.0% in the next.

The EUR/USD pair hit 1.1422 and settled around 1.1390, while GBP/USD reached 1.2812 to finish at around 1.2750.

According to a leaked document, the European Parliament could veto any trade deal between the UK and the EU that fails to ensure fair competition and strong standards on the environment and workers’ rights.

Commodity-linked currencies rallied to fresh multi-week highs against the greenback, but trimmed most of their intraday gains ahead of the close, dragged lower by equities. The USD/JPY pair settled a few pips above 107.00.

Gold prices soared, with spot ending the day at around $1,736.60 a troy ounce. Crude oil prices advanced intraday but pulled back from highs alongside Wall Street.

Cryptocurrency Market News: Bitcoin’s attempt to crack $10,000 was stopped once again

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD falls toward 1.19 after robust US Nonfarm Payrolls data

EUR/USD is trading above 1.19 after dipping below that number in response to the US Nonfarm Payrolls, which showed an increase of 379K jobs in February. Higher yields in response to Powell are keeping the dollar bid.


GBP/USD recovers after post-NFP dip below 1.38

GBP/USD is trading above 1.38 bus till down the day. The US gained 379,000 jobs in February, roughly double than expected and supporting the dollar. The Senate's stimulus debate is eyed.


XAU/USD battles 1700 level

Gold is staging a rebound toward $1,700 amid proift-taking ahead of the weekend but remains on track to close the third straight week in the negative territory.

Gold News

Cardano ready to resume uptrend towards $2

Cardano price shows signs of a reversal after a 30% correction. The Tom DeMark Sequential indicator’s buy signal on the 4-hour and the 12-hour chart hints at a continuation of the bull rally.

Read more

US Dollar Index pushes higher to 92.20 on stellar Payrolls

The march north in the greenback remains unabated and trade in fresh 2021 highs beyond the 92.00 hurdle when tracked by the US Dollar Index (DXY).

US Dollar Index News