We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
More View more
Real Time News
  • As we head into next week, Cable is continuing to digest the massive leg higher last month, which at some point soon could mean another surge. Get your $GBPUSD technical analysis from @PaulRobinsonFX here: https://t.co/LJ42YhDe3X https://t.co/5hGwhGBpLB
  • Asia’s vast and growing importance to the world economy is not yet matched by the presence of a currency trading center to rival the established order. Get your update on market drivers in Asia from @DavidCottleFX here: https://t.co/E2hqoRdO7q https://t.co/urMnUCq4fn
  • RT @markets: White-hot pot stocks have flamed out in spectacular fashion https://t.co/3GsVsRyZaZ
  • What is the best time to trade #forex? Find out: https://t.co/M9R46r5ewa #tradingstyle https://t.co/gJ1QDrox67
  • #Gold prices may be given a tailwind from the FOMC minutes and escalating trade war risks if they fuel demand for anti-fiat assets amid expectations of additional Fed easing. Get your $XAUUSD market update from @ZabelinDimitri here: https://t.co/OJ7WUY9W7E $gld https://t.co/kBp3opzptm
  • Why should you set trading goals? How can it help regardless of what your #tradingstyle is? Find out: https://t.co/AYdD7ODlv1 https://t.co/G0ftVurNNN
  • Manning the penalty box today...i hope there aren't too many visitors https://t.co/1y81Li7laL
  • Do you think your #tradingstyle is of a #FOMO trader? Find out how you can turn that to #JOMO? Find out: https://t.co/79Q4pYdVEd https://t.co/S82AOd5AeP
  • What are the truths and lies of #forex trading regardless of your #tradingstyle here: https://t.co/uF75VPzstr https://t.co/xJ808KvLxr
  • RT @PaulMDomenick: “But Paul, I don’t have a mentor!! Really? •Do you have YouTube? You have a mentor! •Do you have a bookstore? You hav…
US Dollar Down, S&P 500 Shows Weakness After Decidedly Dovish Fed

US Dollar Down, S&P 500 Shows Weakness After Decidedly Dovish Fed

2019-03-21 00:00:00
Daniel Dubrovsky, Analyst

Asia Pacific Market Open Talking Points

  • The US Dollar fell on dovish Fed and softer economic projections
  • S&P 500 jawboned, quickly trimming sharp gains on the FOMC
  • NZD/USD unexpectedly rose on lackluster GDP, AUD eyes jobs data

Find out what the #1 mistake that traders make is and how you can fix it!

Key FX Developments Wednesday

The US Dollar underperformed against its major counterparts on Wednesday after a relatively dovish Fed rate decision. Heading into the announcement, the markets were pessimistic with Fed funds futures pricing in a 25% chance of a cut by the end of this year. This would entail dropping the 2 rate hikes policymakers’ projected for 2019 back in December.

That turned out to be the case, but in the medium-term the updated dot plot (a chart that shows each official’s forecast for rates in the future) still alluded to one hike in 2020. What seemed to carry more weight in the FOMC announcement, and sending local front-end government bond yields lower, was a more pessimistic downgrade in economic projections than expected.

Wall Street and the S&P 500 soared on the announcement. This is because a pause in the central bank’s tightening cycle bodes well for equities. What is more interesting is that just two hours after the Fed, the S&P 500 was back to square one as it trimmed all its gains on the FOMC. The reality that financial markets face is that such a dramatically dovish shift in arguably the most influential central bank is not without its consequences.

Elsewhere, the British Pound also weakened as markets met UK Prime Minister Theresa May’s request to extend the Brexit deadline by three months with skepticism. Meanwhile, the anti-risk Japanese Yen and Swiss Franc were some of the best-performing majors as markets seem quite cautious. European equities did close lower before Wall Street did the same.

Thursday’s Asia Pacific Trading Session

As markets transitioned into Thursday’s Asia Pacific trading session, the New Zealand Dollar puzzlingly got a boost from lackluster local fourth quarter GDP data. While the year-on-year rate of growth slowed, markets seemed to focus more on the in-line 0.6% quarter-on-quarter outcome. This may have led investors to believe that perhaps the nation could remain resilient in the short-term as world output slows.

Ahead, the Australian Dollar looks to February’s jobs report. Lately, economic data from Australia has been tending to outperform relative to economists’ expectations. A rosy outcome may diminish RBA rate cut bets, which are more aggressive than those priced in for the Federal Reserve. That may send AUD/USD higher. But follow-through will depend on how Asia stocks interpret the Fed and Wall Street’s trading session.

US Trading Session Economic Events

US Dollar Down, S&P 500 Shows Weakness After Decidedly Dovish Fed

Asia Pacific Trading Session Economic Events

US Dollar Down, S&P 500 Shows Weakness After Decidedly Dovish Fed

** All times listed in GMT. See the full economic calendar here

FX Trading Resources

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.