Dollar Falls after Rate Cut
Action Economics: The dollar moved mostly lower through the N.Y morning session, taking the USD index to record lows in the process. The European majors all moved to trend highs, as did the CAD and AUD. The major exception was USD-JPY, which remained inside relatively narrow trading bands. Ahead of the FOMC, a barrage of U.S. data ultimately had little impact on the dollar, as stronger Q3 GDP was offset by a miserable Chicago PMI headline. The FOMC decision came in as expected, with a 25 bp target rate cut, though the accompanying statement was on the hawkish side, and the Fed largely moved to a neutral bias. In the aftermath of the decision, the greenback tried to rally, though gains were fleeting, and the USD index quickly moved into record low territory into the close.
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