0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Bullish
Low
High
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
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • Hey traders! We continue to drag higher for risk assets. What are some market highlights for the day? Find out from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/5BDoY4Ui5d
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.48% 🇪🇺EUR: 0.24% 🇦🇺AUD: 0.12% 🇨🇭CHF: -0.02% 🇳🇿NZD: -0.13% 🇯🇵JPY: -0.54% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/yNrrT0AZIu
  • 🇷🇺 GDP Growth Rate YoY Prel (Q2) Actual: -8.5% Expected: -9% Previous: 1.6% https://www.dailyfx.com/economic-calendar#2020-08-11
  • #Gold Price Outlook: $XAUUSD Crashes – Reversal or Retracement? - $GLD Levels - https://t.co/LcRBQnc8ge https://t.co/h02MbwzEqm
  • Join @JStanleyFX 's #webinar at 1:00 PM ET/5:00 PM GMT for his weekly update on trading price action. Register here: https://t.co/yu1uNFb2tm https://t.co/mcnWMvlHRj
  • 🇷🇺 GDP Growth Rate YoY Prel (Q2) Actual: -8.5 Expected: -9% Previous: 1.6% https://www.dailyfx.com/economic-calendar#2020-08-11
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.97% US 500: 0.30% FTSE 100: 0.19% France 40: 0.04% Germany 30: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/rgI6V7Rpvj
  • Heads Up:🇺🇸 Fed Daly Speech due at 16:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-08-11
  • Heads Up:🇷🇺 GDP Growth Rate YoY Prel (Q2) due at 16:00 GMT (15min) Expected: -9% Previous: 1.6% https://www.dailyfx.com/economic-calendar#2020-08-11
  • $AUDUSD turn potential, testing support side of rising wedge, resistance from .7185-.7250 in-play for a few weeks now are bulls finally throwing in the towel after the meteoric rise from March-July? $Aussie $AUD https://t.co/EHPM6BpQvB
US Dollar Dives After March FOMC Meeting Reveals Dovish Fed

US Dollar Dives After March FOMC Meeting Reveals Dovish Fed

2019-03-20 18:08:00
Peter Hanks, Analyst
Share:

FOMC Meeting Talking Points:

  • FOMC officials expectedly delivered no change to the 2.25% - 2.50% interest rate range
  • The US Dollar traded lower as market participants digested the monetary policy impact from the new Summary of Economic Projections
  • See the full DailyFX Webinar Calendar for upcoming strategy sessions following the FOMC meeting

US Dollar Dives After March FOMC Meeting Reveals Dovish Fed

The Federal Open Market Committee offered no change to the 2.25% - 2.50% interest rate range at March’s policy meeting, in line with market expectations. Despite the unsurprising rate announcement, the US Dollar (reflected by the DXY Dollar Basket) traded lower following a firmly dovish shift from the central bank.

Accompanied by the Fed’s decision to maintain the current rate range was new language in the FOMC’s March statement. The revisions reflect lower growth and inflation forecasts for the US economy with expected 2019 GDP dropping from 2.3% to 2.1%. Lowered forecasts were within market expectations, but the degree to which the Fed cut the economic outlook may have been more pessimistic than anticipated which likely contributed to the subsequent price action.

View our Economic Calendar for events scheduled later in the week like New Zealand GDP and a Bank of England rate decision.

In the statement, the Federal Reserve signaled no hikes in the interest rate range in 2019, with one hike likely in 2020. Further, FOMC officials announced the bank will taper balance-sheet roll off and may halt the process in late September. The decision to pause on interest rate hikes marks a concrete development in the central bank's policy and solidifies the bank's dovish stance. In response the US Dollar added to recent losses from days prior, plunging to 96.00 from 96.45 immediately after the announcement crossed the wires.

US Dollar Basket Price Chart (DXY): 1-Minute Time Frame (March 20) (Chart 1)

us dollar price chart fomc

US Dollar Basket Price Chart (DXY): Daily Time Frame (January 2018 - March 2019) (Chart 2)

us dollar price chart fed decision

On the broader Dollar chart, price action following the Fed’s policy decision sent the index through support from April around 96.25. Following the report’s release, Federal Reserve Chairman Jerome Powell will offer further insight into the Fed’s stance at a post-decision press conference. Volatility in USD crosses and US equity indices may continue as clarifying statements are made or unexpected comments are offered. In the meantime, get up to speed on themes to watch during Chairman Powell’s conference.

Check back for updates as the story develops…

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more: Dow Jones, S&P 500, FTSE 100 and DAX 30 Fundamental Forecast

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

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

DISCLOSURES

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.