Forex Today: The dollar wins again – by ValBednarik EURUSD XAUUSD Fed BOE
The dollar finished Wednesday higher across the FX board following a volatile American session. The US Federal Reserve was behind the wild moves, as the central bank delivered as expected, butThe central bank pulled the trigger by 75 basis points, and the accompanying statement suggested policymakers would soon slow the pace of QT.
“In determining the pace of future increases in the target range, the Committee will take into account the cumulative tightening of, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.” The greenback plummeted to fresh weekly lows against most major rivals as investors rushed to price in a 50 bps rate hike in December. However, Chair Jerome Powell’s speech brought dollar buyers back to life. The head of the central bank noted that inflation needs to be taken down “decisively,” adding they are ready to change the monetary policy as needed. He mentioned that slowing the pace of rate hikes will become necessary at some point but also that it may take time for inflation to come down, and therefore, a restrictive policy stance should stay for some time. Finally, he added that. His words revived the odds of a fifth 75 bps in December. Stocks fell, yields surged, and the dollar soared. Meanwhile, speculation that China could ease its zero-covid policy was erased after the country announced a new lockdown, this particular one, involving the area around the world's largest iPhone factory, spurred concerns at the beginning of the day. The EUR/USD pair trades in the 0.9820 price zone after posting a fresh weekly high of 0.9975. GBP/USD plummeted below 1.1400, while AUD/USD trades around 0.6350.The dollar also gained against safe-haven rivals. USD/CHF is above parity, while USD/JPY trades around 147.80.According to preliminary EIA data,208k bpd to 533k bpd for the week ending Oct. 28, according to preliminary EIA data, unexpectedly boosting oil prices. WTI eased at the end of the day amid plummeting equities but still closed in the green at $89.20 a barrel. Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet. FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
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