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18 Mar 2015
What’s Next: Wild USD moves after the Wall Street close
FXStreet (Córdoba) - The dollar accelerated losses across the board and fell more than 200 pips in a matter of minutes versus its major competitors amid thin liquidity following the Wall Street close.
EUR/USD rose briefly above 1.1000 and reached a 2-week high of 1.1035. However, the pair pulled back, also quite strongly, and it was last around 1.0850, still 2.63% above its opening price.
GBP/USD broke above the 1.50 mark, triggering stops that fueled the rally toward a 12-day high of 1.5164 before retracing a noticeable part of such gains. At time of writing, the pair is trading at 1.5012, recording a 1.75% gan on the day. Cable had scored a fresh nearly 5-year low of 1.4634 during the European session.
USD/JPY slumped to a low of 119.23 before bouncing back toward the 120.00 zone.
At today’s meeting, the Federal Reserve decided to leave the target for federal funds rates unchanged at 0-0.25% and dropped the word patience in respect to its first rate hike. However, members downgrade their economic projections which suggested they are in no rush either.
Yellen reiterated the timing of the first raise remains data dependent and they’ll be observing a wide range of data till they feel “confident” inflation is on track to return to its 2% target and the job market improvement proves sustained.
Trading might remain choppy during the next sessions as markets continue to assess the implications of the change in Fed's forward guidance regardless Yellen said that does not mean that the FOMC has decided on the timing of the initial increase in the target range.
EUR/USD rose briefly above 1.1000 and reached a 2-week high of 1.1035. However, the pair pulled back, also quite strongly, and it was last around 1.0850, still 2.63% above its opening price.
GBP/USD broke above the 1.50 mark, triggering stops that fueled the rally toward a 12-day high of 1.5164 before retracing a noticeable part of such gains. At time of writing, the pair is trading at 1.5012, recording a 1.75% gan on the day. Cable had scored a fresh nearly 5-year low of 1.4634 during the European session.
USD/JPY slumped to a low of 119.23 before bouncing back toward the 120.00 zone.
At today’s meeting, the Federal Reserve decided to leave the target for federal funds rates unchanged at 0-0.25% and dropped the word patience in respect to its first rate hike. However, members downgrade their economic projections which suggested they are in no rush either.
Yellen reiterated the timing of the first raise remains data dependent and they’ll be observing a wide range of data till they feel “confident” inflation is on track to return to its 2% target and the job market improvement proves sustained.
Trading might remain choppy during the next sessions as markets continue to assess the implications of the change in Fed's forward guidance regardless Yellen said that does not mean that the FOMC has decided on the timing of the initial increase in the target range.