As widely expected, the FED kept rates unchanged with only minor changes in the accompanying statement. Specifically, the FED members reiterated that any changes in rates will be data dependent in the future. Since the Fed did not give any signals as to when to expect the next hike, a hike already in March now seems unlikely, as the Fed usually tries to prepare markets for upcoming hikes.
The Dollar weakened further and maintained its status as the weakest currency this week. Dollar Index is down to 99.48 from 100.97 last week. The Index is trading at its lowest since last November.
Strongest currencies of the week are the JPY, AUD and CAD. The EURUSD dropped to 1.0730 after the release of the strongest ADP employment report since June however gave back all its losses after the Dollar weakened following the FED rate decision.
Super Thursday is here today for the UK where the releases of interest rates, the amount of the asset purchase plan as well as the inflation report are expected to be released. The expectation is for no change in the first two, but an upwards revision for inflation, which could bring the case for a rate hike sooner than the market expects.
Oil continues to trade within a range of 52.50 and 53.50 with an upwards bias, while gold took advantage of Dollar weakness and climbed as high as $1217 per ounce.
The post Bullet Report: Dollar falls further after FED – Big day for the GBP appeared first on Forex.Info.