Dollar firms as Fed divided on stimulus.......>

FOREX: Dollar firms as Fed divided on stimulus

-The greenback ended up firmer following the Fed rate decision. While the Fed

trimmed rates by 25bps and acted to stem volatility in money markets (by cutting

the IOER by 30bps), there were stark divisions among the FOMC, clouding the

outlook for rates. While Bullard opted for a 50bps cut, both George and

Rosengren voted for unchanged rates, typifying the FOMC's approach. The

subsequent dot plot also stopped short of committing to cuts in 2020.

-In the subsequent press conference, Powell's stress on the data dependency of

the Fed, the lack of forecast of a recession and the ruling out of negative

rates also helped underpin the greenback. Nonetheless, those waiting for a

bullish breakout of the USD index were left disappointed - the week's highs of

98.744 printed Tuesday remain in tact for now.

-Central banks retain the spotlight Thursday, with decisions due from the Bank

of Japan, Bank of England, Norges Bank, South African Reserve Bank and Swiss

National Bank. Australian jobs data, UK retail sales and weekly US jobs data are

also on the docket.