Dollar edges lower in choppy trading after Fed rate cut
Dollar index hit lowest in more than a year
Domestic data supports Australian, New Zealand currencies
Sterling jumps after BoE
Updates prices throughout, adds analyst comment
By Chibuike Oguh and Stefano Rebaudo
NEW YORK, Sept 19 (Reuters) -The U.S. dollar edged slightly lower in choppy trading on Wednesday as markets grappled with the supersized 50 basis point interest rate cut as well as the switch to an easing monetary policy stance delivered by the Federal Reserve.
Investor expectations had largely shifted towards a dovish outcome in the days leading up to the Fed's move on Wednesday, with money markets pricing in around a 65% chance of a 50 basis point (bp) cut. But economists polled by Reuters were leaning towards a 25 bp cut.
"The initial interpretation of the decision was that it was dovish and while it was basically even odds that it was going to happen, overall, on the surface, it'sstill a dovish move," said Eugene Epstein, head of trading & structured products North America at Moneycorp in Boston.
The dollar index =USD, which measures the greenback against a basket of six peers, was down 0.069% to 100.950 after reversing gains made in early trading. It slid to its lowest in more than a year of 100.21 in the previous session.
The euro EUR=EBS strengthened to $1.111950, but remained below a three-week high hit in the previous session.
Against the yen JPY=EBS, the dollar was 0.45% higher at 142.895.
"Everything reversed basically by the end of the day, so you can make the argument as a bit of buy the rumor, sell the fact. A lot of dovishness was already priced in," Epstein said.
Money markets priced in 72 bps of additional rate cuts in 2024 and 192 bps by September 2025. FEDWATCH
Initial claims for state unemployment benefits dropped unexpectedly to 12,000 last week, according to Labor Department data on Thursday, suggesting labor market growth.
Fed policymakers on Wednesday projected the benchmark interest rate would fall by another half of a percentage point by the end of this year, a full percentage point next year and half of a percentage point in 2026.
The pound hit its highest since March 2022 versus the dollar after the Bank of England's Monetary Policy Committee (MPC) voted 8-1 to keep rates on hold. Sterling was up 0.30% against the greenback at $1.32540 after reaching as high as $1.3314 GBP=D3.
The Australian and New Zealand dollars drew support from domestic data surprises. Australian employment exceeded forecasts for a third straight month in August.
The Aussie AUD=D3 was up 0.56% to $0.68020.
The kiwi NZD=D3, meanwhile, traded 0.42% higher at $0.62335, after data showed the New Zealand economy contracted by 0.2% in the second quarter.
World FX rates https://tmsnrt.rs/2RBWI5E
The Fed’s dot plot https://reut.rs/3Xo3JtO
Fed cuts rates by 50 basis points, joins easing cycle https://reut.rs/3MPDwzD
Reporting by Chibuike Oguh in New York and Stefano Rebaudo; Editing by Conor Humphries
Aset Terkait
Berita Terbaru
Pengungkapan: Entitas XM Group menyediakan layanan khusus eksekusi dan akses ke Fasilitas Trading Online kami, yang memungkinkan Anda untuk melihat dan/atau menggunakan konten yang tersedia pada atau melalui situs, yang tidak untuk mengubah atau memperluas, serta tidak mengubah atau memperluas hal tersebut. Akses dan penggunaan ini selalu sesuai dengan: (i) Syarat dan Ketentuan; (ii) Peringatan Risiko; dan (iii) Pengungkapan Penuh. Oleh karena itu, konten disediakan hanya sebagai informasi umum. Anda juga harus ketahui bahwa konten Fasilitas Trading Online kami bukan sebagai ajakan atau tawaran untuk untuk melakukan transaksi apa pun di pasar finansial. Trading di pasar finansial mana pun melibatkan tingkat risiko yang signifikan pada modal Anda.
Semua materi yang diterbitkan di Fasilitas Trading Online kami hanya untuk tujuan edukasi/informasi dan tidak boleh mengandung nasihat dan rekomendasi finansial, pajak investasi atau trading, catatan harga trading kami, penawaran, permintaan, transaksi dalam instrumen finansial apa pun atau promo finansial untuk Anda yang tidak diminta.
Konten pihak ketiga apa pun, serta konten yang disiapkan oleh XM, seperti opini, berita, riset, analisis, harga, informasi lain atau link ke situs pihak ketiga yang tersedia "sebagaimana adanya", sebagai komentar pasar umum dan bukan menjadi nasihat investasi. Sejauh konten apa pun ditafsirkan sebagai penelitian investasi, Anda harus memperhatikan dan menerima bahwa konten tersebut tidak dimaksudkan dan belum disiapkan sesuai dengan persyaratan hukum yang dirancang untuk mempromosikan kemandirian riset investasi dan dengan demikian akan dianggap sebagai komunikasi pemasaran di bawah hukum dan peraturan yang relevan. Mohon dipastikan bahwa Anda telah membaca dan memahami Notifikasi pada Riset Investasi Non-Independen dan Peringatan Risiko kami mengenai informasi di atas, yang dapat diakses disini.
