USD

The Federal Reserve left rates unchanged this afternoon, and subtly upgraded its assessment of labour markets and growth, disappointing those expecting a more dovish bias and lending the dollar some much-needed support. In the widely-expected decision, the Federal Open Market Committee voted by a consensus-driven 10-to-2 margin to maintain the target range for the federal funds rate between 3.50 and 3.75 percent. Trump appointee Stephen Miran again dissented from the majority in favour of a bigger move, joined by Christopher Waller, who is seen as a potential candidate for Chair when Jerome Powell’s term ends. In a tweak to the...

The dollar is tumbling through technical barriers across most major currency pairs after US president Donald Trump told reporters “I could have it go up or down like a yo-yo,” and that he’s not concerned about its recent decline, saying “Look at the business we’re doing. The dollar’s doing great”. “If you look at China and Japan, I used to fight like hell with them, because they always wanted to devalue,” he said, but “it’s hard to compete when they devalue”. The president’s comments suggest that recent (rumoured) moves to support Japanese currency intervention—intended to raise the value of the...