Forexlive Americas FX news wrap: Dollar sinks after the FOMC, bond yields drop | Forexlive


FOMC decision:

Other headlines

Markets:

Gold down $4 to $1978US 10-year yields down 11 bps to 4.76% WTI crude oil down 10-cents to $80.92Nasdaq up 1.65%AUD leads, EUR lags

The market had plenty to contemplate today with a busy slate of economic data, quarterly refunding and the Fed decision. On net, the data was softer, the Treasury didn’t borrow as much as feared and Powell didn’t push to boost the odds of a December rate hike. The results were choppy but ultimately, the US dollar softened, Treasury yields fell and equities rallied.

AUD/USD was a big winner as it senses a shift away from global tightening along with fresh easing and spending in China. It rose 60 pips on the day and is set for the best close since October 10.

The euro and pound were ultimately choppy as yields in Europe also fell. Both had fallen earlier in the day but were rescued by broad USD selling. The yen also reversed some of yesterday’s huge move as USD/JPY fell below 151.00.

The bigger moves were in equities and bonds as some relief is in sight. The next big event will be Friday’s jobs report along with the ISM services report. Softer numbers could further depress yields and some FOMO could emerge with 5% yields slipping away.



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