🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

FOREX-Dollar mixed, euro higher after hawkish central bank shift

Published 09/19/2019, 10:44 PM
Updated 09/19/2019, 10:50 PM
© Reuters.  FOREX-Dollar mixed, euro higher after hawkish central bank shift
EUR/USD
-
USD/JPY
-
USD/CHF
-
AUD/USD
-
NZD/USD
-
DXY
-

(Recasts, new throughout; adds analyst quotes)
By Kate Duguid
NEW YORK, Sept 19 (Reuters) - The U.S. dollar was mixed on
Thursday morning, weaker against the euro, the Swiss franc and
the Japanese yen, but stronger versus the Antipodean currencies
after a slew of central bank decisions came in more hawkish than
expected.
The Federal Reserve on Wednesday cut interest rates by 25
basis points to provide insurance against risks including weak
global growth and resurgent trade tensions, while signaling a
higher bar to further reductions in borrowing costs.
Subsequently, the Swiss National Bank, the Bank of England
and the Bank of Japan all kept their policies on hold. Norges
Bank increased its key policy rate, moving its rates in the
opposite direction of the United States and European Union.
The dollar dipped, 0.22% lower against a basket of
currencies .DXY , despite Fed Chair Jerome Powell's statement
that "what we think we are facing here is a situation which can
be addressed, which should be addressed, with moderate
adjustments to the federal funds rate." Powell noted that the
U.S. labor market was strong and inflation was likely to return
to the Fed's 2% annual goal. Central banks "came off a really bad month of August for
risk and for sentiment," said Brian Daingerfield, macro
strategist at RBS Securities in Stamford, Connecticut.
"But as September dawned, some of the worst U.S.-China trade
escalation has pulled back, the market has been pricing out the
possibility of a near-term no-deal Brexit as we prepared for
elections in the UK. Some of the economic data have brightened a
bit," he added.
The Swiss franc CHF= rallied against its major peers on
Thursday and is on track to post its biggest daily jump versus
the greenback in a month. Against the dollar, the euro EUR=
was 0.23% stronger, last at $1.1055. Elsewhere, the Japanese yen JPY= maintained earlier gains
after the Bank of Japan kept interest rates on hold, last up
0.37% against the dollar. The BOJ also signaled the chance of
expanding stimulus as early as its next policy meeting in
October by issuing a stronger warning over the risks threatening
the economy. The central banks are generally "kind of holding their
breath and holding their fire in terms of fully acknowledging
that further easing could come down the road but not moving in a
proactive way towards additional easing," said Daingerfield.
Against the Australian AUD= and New Zealand NZD= dollars
the U.S. dollar was stronger, up 0.47% and 0.21% respectively.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.