Market see-saws as Fed signal no further......>

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.