Forex Close
USD knee-jerked higher after the FOMC cut 25bps from the Fed Funds and Discount rates while addressing the potential for further near-term rate easing. The Greenback sold off after its initial bounce higher and is now trading lower across the board with the USD Index down 0.4%.
EUR/USD caught a decent bid following the rate decision and is up 0.32% to 1.5618 after trading flat for most of the day.
Cable strengthened and is currently trading in the upper portion of today’s range up 0.93% to 1.9880. EUR/GBP is down 0.6% to 0.78597.
USD/JPY traced the post-rate announcement rally in equities and peaked out at 104.75 before a fervent sell-off into the close pushed USD/JPY into the red at 103.90.
USD/CAD traded in the red for most of the day to finish down 0.65% at 1.0061.
July FED Fund futures ticked higher after FOMC and now show a 21% chance of a 25bp cut on June 25, and a 78% chance rates will be left unchanged.