Dollar is clearly the biggest loser today, punched down by a chorus of Fed officials who want patience before more rate hikes. While New Zealand Dollar, is keeping the top spot, Euro is indeed the biggest beneficiary of the Dollar selloff.
With 1.15 handle taken out in EUR/USD, the pair should now be heading back to 1.1727 fibonacci level to correct the whole down trend from 1.2555.
Here is a quick recap of the Fedspeaks:
- Boston Fed President Eric Rosengren: “I believe we can wait for greater clarity before adjusting policy.”
- Chicago Fed President Charles Evans: “I feel we have good capacity to wait and carefully take stock of the incoming data and other developments”.
- Atlanta Fed President Raphael Bostic: “The appropriate response is to be patient in adjusting the stance of policy and to wait for greater clarity about the direction of the economy and the risks to the outlook”.
We had a first impression that Canadian Dollar is lifted after BoC rate decision, mainly due to the decline in USD/CAD. But the Loonie was just mixed indeed. BoC left interest rate unchanged at 1.75%, lowered 2019 growth forecast by -0.4% due to temporary factors. Inflation is also projected to edge lower from 1.7% and stay below target for most of 2019. But the overall tone of the statement, as well as Governor Stephen Poloz’s press conference, was up beat. Only that Poloz is in no hurry to move interest rate soon.
In the US markets:
- DOW is up 0.61%
- S&P 500 is up 0.51%
- NASDAQ is up 0.73%
- 5-year yield is flat
- 10-year yield is up 0.16 at 2.732
- 30-year yield is up 0.036, back above 3% handle at 3.029. But that provides little support to Dollar
- FTSE rose 0.66%
- DAX rose 0.83%
- CAC rose 0.84%
- German 10 year yield dropped -0.0069 to 0.223