The Federal Reserve Bank released its monthly policy decision and held interest rates at the current level, however the Fed's failure to address the issue of the timetable for tapering for quantitative easing scheme left Dollar bulls in the lurch and sent the U.S. Dollar Index wallowing close to a 6-week trough. Making matters worse for the bullish crowd the Fed took on a decidedly dovish stance by announcing that the current low inflationary trend posed some risks to the economic outlook, suggesting to some analysts that the current easing policy of $85 billion in asset purchases was likely to continue for an extended time. With the Fed policy decision out of the way markets will now focus on decisions from the European and U.K. central banks.
The EUR/USD pair had touched on a 6-week peak to trade at $1.3345 before slipping back to $1.3304; meanwhile the USD/JPY pair slipped to 97.585 Yen, a fresh 1-month trough. The U.S. Dollar Index slipped 0.2% on Wednesday and traded at 81.654 .DXY. The Aussie Dollar was one of the few major currencies to move lower against the greenback with the AUD/USD pair trading at a session low of $0.8910 before recovering slightly to $0.8949.
Fed's Tone Disappoints Dollar Bulls
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.
... Read more After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.