The N. American market understood yesterday’s Fed statement and the three dissents in favor of a neutral bias as a hawkish hold and rallied the dollar in response. Follow-through selling today has been minimal and the greenback is sporting a softer profile.
The strongest currency today is the Japanese yen, which had fallen to its lowest level since July 2024, before heightened Japanese verbal intervention. The dollar reversed lower from the JPY160.70 area to fray JPY159.00 in the European morning.
Strong US economic data and a hawkish hold by the Federal Reserve drove the euro lower. It was sold through last week’s low (~$1.1670). The euro was sold to $1.1655 in the Asia-Pacific session today before recovering to almost $1.17.
The outcome of the BOE and ECB meetings are awaited. Both are expected to attempt a hawkish hold.
On the back of strong capex, the US reports its first look at Q1 GDP today. The median forecast in Bloomberg’s survey is for a 2.3% annualized pace, while the Atlanta Fed’s tracker is almost half of it (1.2%).
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The North American market understood yesterday’s Fed statement and the three dissents in favor of a neutral bias as a hawkish hold and rallied the dollar in response. Follow-through selling today has been minimal and the
