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Health Ministers Release Joint Statement




Precatorios Bill May Be Voted On This Thursday


Chairman Powell

FOREX: Market see-saws as Fed signal no further rate cuts
-The Fed trimmed rates as expected in what initially appeared to be a hawkish
cut as the key phrase 'will act as appropriate to sustain the expansion' was
removed. Markets acted accordingly, sending the greenback higher. This was
quickly reversed as the presser got underway, however, with markets eyeing
Powell's disclosure that the Fed "really don't see inflation moving up right
now". This appeared to open a larger gap between the end of this cutting cycle
and the beginning of the next move higher in rates. EUR/USD surged in response,
hitting a new weekly high and (briefly) showing above 1.1150.
-Elsewhere, the CAD dropped sharply as the Bank of Canada kept rates unchanged.
The market's focus switched to 2020 growth downgrades and the disclosure that
the Bank have begun to consider a so-called 'insurance' rate cut. USD/CAD topped
out at the 100-dma resistance at 1.3206.
-German retail sales, French & Eurozone CPI, Canadian GDP, US personal income
and MNI Chicago PMI releases are the data highlights Thursday. ECB's de Guindos
and the Bank of Japan rate decision are also due.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |