The greenback retreated in relation to other major currencies
FOREX
The US dollar is on the back foot as the European session gets underway. The greenback retreated in relation to other major currencies, following the Federal Reserve’s decision on Wednesday, to hike interest rates by 25 basis points. The increase in borrowing costs had long been priced into the value of the dollar, however some doubts persisted over what would be the tone used during the announcement. As it turned out, yesterday was a classic example of a dovish hike. Yes, the rates went up by 25 basis points, but Federal Reserve chairman, Jerome Powell, focused on the headwinds facing the US economy, including the still unresolved regional banking crisis. Abandoning the hawkish stance of previous occasions, Powell promised a data dependent approach to future monetary policy decisions, with the dollar losses punctuating what looks to be the end of the current hiking cycle.
Ricardo Evangelista – Senior Analyst, ActivTrades
The US dollar is on the back foot as the European session gets underway. The greenback retreated in relation to other major currencies, following the Federal Reserve’s decision on Wednesday, to hike interest rates by 25 basis points. The increase in borrowing costs had long been priced into the value of the dollar, however some doubts persisted over what would be the tone used during the announcement. As it turned out, yesterday was a classic example of a dovish hike. Yes, the rates went up by 25 basis points, but Federal Reserve chairman, Jerome Powell, focused on the headwinds facing the US economy, including the still unresolved regional banking crisis. Abandoning the hawkish stance of previous occasions, Powell promised a data dependent approach to future monetary policy decisions, with the dollar losses punctuating what looks to be the end of the current hiking cycle.
Ricardo Evangelista – Senior Analyst, ActivTrades