Skip to Content
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.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Dollar Resetting for Fed, NZD Another Unexpected Rate Decision Mover

Dollar Resetting for Fed, NZD Another Unexpected Rate Decision Mover

Talking Points:

• The RBNZ cut rates, and yet the New Zealand Dollar rallied on the news as future easing pressures cooled

• A string of volatile and unexpected market responses to monetary policy further amplifies the FOMC risk

• Both equities and the Dollar have extended their respective declines, how much run is there to these moves?

Sign up for a free trial of DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, trading signals and much more!

We are now less than one week away from the FOMC rate decision - a crucial fundamental event risk to the global financial system made all the more important due to its timing. We are in the twilight of the year with market depth expected to thin as further bouts of volatility look disturbingly likely. The liquidity risk is palpable. And, the potential relief that we may have found in an expected quiet response to an in-line Fed decision has further diminished thanks to a surprise reaction from the Kiwi after the RBNZ rate cut. Building on the Euro's contradictory move to the ECB QE upgrade last week, market participants are increasingly uncertain of their evaluations for these critical fundamental assessments and positioning. With the BoE and SNB decisions ahead, we will see another monetary policy weigh in before we are forced to focus on the volatility threat that the Fed poses. We look at key event risk, the distortions in underlying themes and the prevailing market conditions in this final Trading Video of the year.

Sign up for John’s email distribution list, here.

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