Forex Currency: The dollar losses against its major rivals on Thursday, with three-week lows after the Federal Reserve dialed back its predictions of future rate hikes this year, amid increasing uncertainty over the global economic outlook.
The Fed left interest rates on hold at the conclusion of its meeting on Wednesday. It would be “patient” before making any further rate hikes, dropping its guidance that ‘further gradual’ rate rises will be needed.
“The Fed has went as far as expectations were raised in terms of being dovish..the responsive reaction by the Fed means that the chances of a recession have faded,” said Michael McCarthy, chief markets strategist at CMC Markets.
Major Forex Currency Pairs
AUD/USD: The Australian dollar was higher, rising 0.34% to 0.7268 after rallying 1.36% on Wednesday.
The U.S. dollar index, against six major peers, was down 0.13% to 94.91 by 03:37 AM ET (08:37 GMT), close to a three-week low after falling 0.5% on Wednesday.
USD/JPY: The dollar was weaker against the yen, with losing 0.31% to trade at 108.66.
EUR/USD: The euro advancing 0.23% to 1.1504 as the dovish Fed offset a sharp slowdown in German retail sales in December.
GBP/USD: The pound was also stronger against the U.S. currency, with up 0.21% to 1.3142, but gains looked likely to be held in check amid ongoing uncertainty over Britain’s plans to avoid a no-deal Brexit.
EUR/GBP: Sterling was little changed against the euro, with holding at 0.8746.
