The USD gets smashed after FOMC

As North American traders enter for the day, the CHF and CAD are the strongest currencies (and trading at the day's extremes for the USDCHF and USDCAD), while the USD gets smashed (and is the weakest currency) as traders continue the negative reaction from the FOMC decision yesterday. The BOE lowered growth estimates but feels tightening is still the way to go assuming a smooth Brexit. That is a big "If". The GBP pairs are coming off highs.

The USD gets smashed after FOMC

The ranges for the major pairs against the US are all above their 22 day averages suggesting a strong price action today. As mentioned the GBP pairs are off highs post the BOE decision. The GBPUSD is mid-range but still higher. The EURGBP and GBCHF are at the days extreme (lows for the GBP).

The ranges and changes for the  major currency pairs

In other markets:

  • spot gold is soaring on the back of the weaker dollar. Is trading down $21 or -1.54% at $1381.70. The hhigh extended all the way up to $1394.91
  • WTI crude oil futures are up $1.84 or 3.42% at $55.60

in the US stock market the futures are implying a much higher opening:

  • Dow, +244 points
  • S&P index +29 points
  • Nasdaq +108 points

In Europe, the major indices are also trading higher:

  • German DAX, +0.8%
  • France's CAC, +0.65%
  • UK's FTSE, +0.68%
  • Spain's Ibex, -0.24%
  • FTSE MIB +0.73%

In th US debt market yields have continued lower after yesterday's sharp fall after the FOMC decision. The US 10 year traded to a low level today at 1.9719% and is currently below the 2.0% level.

US yields are lower

In Europe, the benchmark 10 year yields are also sharply lower with the German yield down to -0.314%. The French 10 year is approaching 0.0% at 0.016% (low reached 0.009%).

France's 10 year approaches 0.0%