News & Analysis at your fingertips.

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. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Wall Street
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
More View more
Real Time News
  • The S&P 500, Dow Jones and DAX 30 could be at risk of falling as retail traders continue increasing their upside exposure in these indices. What are the key technical levels to watch for? Find out from @ddubrovskyFX here:
  • The US Dollar continues to hold its ground against most ASEAN currencies as recent downtrends lose momentum. What is the road ahead for USD/SGD, USD/THB, USD/PHP and USD/IDR? Find out from @ddubrovskyFX here:
  • The Canadian Dollar has been caught in broad ranges against the Euro and the US Dollar, but can the upside bias in USD/CAD and EUR/CAD prolong? Find out here:
  • Want to hear my thoughts on the US Dollar? Check out yesterday's recording with #AuzBiz hosted by @KaraOrdway on 'The Trade' We discussed a #USD index, Treasury yields, $USDJPY, $AUDUSD and $NZDUSD
  • Gold has plunged nearly 5% off the Monthly high with the sell-off now probing key weekly support here at 1738/47- looking for a pivot here with the Fed interest rate decision on tap. Get your $XAUUSD market update from @MBForex here:
  • Feels like the market has been front-running next week’s FOMC announcement, which will reveal updated dot plot projections. Expectations clearly set for a more hawkish shift in guidance. That said, if the Fed does not deliver, US Dollar bulls could be disappointed. $USD $DXY
  • USD/CAD has been chopping around the past week-and-a-half, offering virtually no cues on its next direction. Get your market update from @PaulRobinsonFX here:
  • FDA panel votes 16-3 against approving Covid-19 booster shots - BBG
  • RT @C_Barraud: 🇺🇸 Americans Haven’t Been This Down on #Housing Market Since 1982 - Bloomberg *Link:…
  • US Dollar Price Action Setups Pre-FOMC: EUR/USD, GBP/USD, USD/CAD
Dollar Plunging as Fed Fails to Taper, Keeps Rates Near Zero for Longer

Dollar Plunging as Fed Fails to Taper, Keeps Rates Near Zero for Longer

David Rodriguez, Head of Product

- The US Federal Open Market Committee (FOMC) announced it would NOT taper its Quantitative Easing purchases

- Markets expected the Fed to taper its $85 billion/monthly purchases by $5-$10bn

- Fed Funds rates expected to remain near zero until 2015

- The prospect of more Quantitative Easing for longer is DOLLAR BEARISH

The US Federal Reserved shocked Dollar markets as it unexpectedly left the pace of its Quantitative Easing purchases unchanged through today’s meeting. Bloomberg estimates showed that most expected the FOMC to cut its monthly debt purchases by $5-$10 billion per month, and indeed US bond yields had risen sharply ahead of the highly-anticipated announcement.

Yet the clear disappointment left the Dow Jones FXCM Dollar Index (ticker: USDOLLAR) sharply lower.

forex_us_dollar_plunges_as_Fed_fails_to_taper_body_Picture_5.png, Dollar Plunging as Fed Fails to Taper, Keeps Rates Near Zero for Longer

Source: FXCM Trading Station Desktop, Prepared by David Rodriguez

Markets now wait for the planned press conference scheduled for 18:30 GMT with Fed Chairman Ben Bernanke, where he will almost certainly discuss the FOMC’s decision and likely spark further volatility in US Dollar pairs.

The Federal Open Market Committee likewise released revised forward projections of growth, inflation, and interest rate trends. It was surprising to see that most FOMC members judged that they would begin to raise interest rates through 2015—disappointing some who expected a sooner move.

forex_us_dollar_plunges_as_Fed_fails_to_taper_body_Picture_6.png, Dollar Plunging as Fed Fails to Taper, Keeps Rates Near Zero for Longer

Source: US Federal Open Market Committee Forward Projections

The Dollar may continue recent declines based on the outright plunge in interest rate expectations, and indeed it now trades to fresh lows against the Euro, British Pound, and other major counterparts. Watch the Real Time News Feed for further updates on Bernanke’s scheduled press conference.

--- Written by David Rodriguez, Quantitative Strategist for

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up to David’s e-mail distribution list via this link.

Contact David via

Twitter at

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