FX Brief: Greenback Pummeled as Odds of a 50bps Rate Cut Rise
Matt Weller, CFA, CMT July 18, 2019 4:02 PM
See a summary of the top FX themes and trends from today's US session!
- The US dollar was the weakest major currency on the day as traders increased bets on a 50bps “double” rate cut from the Federal Reserve later this month. The proximate catalyst for shift was a dovish speech by NY Fed President Williams, when he noted that it was “better to take a preventative approach than to wait for disaster.”
- UK Parliament passed an amendment to prevent a Parliamentary shutdown in October ahead of Brexit. The pound was one of the strongest major currencies on the day as a result, along with the Australian dollar.
- Gold surged to test $1445, its highest level in more than six years. Oil dropped 2% on the day, despite weakness in the US dollar.
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