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For seemingly the first time in months, today’s US jobs report had at least a little potential to influence the imminent Federal Reserve interest rate decision.

With the ECB’s policy normalising plans still unchanged while the Fed is apparently no longer as hawkish as it once was then the EUR/USD ‘should’ in theory go up from here

Gold rallied as the dollar and yields both sold off yesterday on the back of the surprisingly less hawkish comments from the Federal Reserve Chairman. The metal has started today’s session slowly, as there hasn’t yet been a significant follow-through in the dollar’s selling.

The Fed turning less hawkish is definitely good news for emerging market currencies, some of which have had a year to forget. If EM currencies now stabilise then this should be good news also for equities, particularly if the US and China manage to end their trade dispute at the G20 summit which begins on Friday.

"We may go past neutral, but we're a long way from neutral at this point, probably." - Fed Chair Powell, 3 October “[Interest rates] remain just below the broad range of estimates of… neutral” -Fed Chair Powell, 28 November Oh, what a difference a month makes!

The Fed is still one of the most hawkish central banks out there and this is reflected in the dollar rallying. But with the pressure growing from Trump and given the recent fundamental developments, the central bank may well change its tone soon, potentially leading to a dollar sell-off.

Risk assets are staging a comeback after yesterday’s big drop (perhaps on signs that the more extreme wing of Trump’s trade advisors is taking a backseat in the upcoming China talks), but the greenback is hardly giving back any of its gains.

Taking a break from our non-stop Brexit coverage, we want to highlight a key development that on the US monetary policy front that may mark a significant shift for markets heading into next year.

If you’re one of the many readers who did, you’re excused for forgetting about today’s Federal Reserve meeting. After all, the high political drama in Washington and London continues to draw plenty of headlines, it’s the first time we’ve seen an FOMC meeting conclude on a Thursday in three years, and the central bank was never going to make any chan...

With the US mid-term elections out of the way, investors’ focus will slowly return to global economics and away from US politics slightly.

As another volatile week is about to conclude, equity markets were coming under a bit of pressure and were giving back a big chunk of their gains from earlier in the week.

Much like we saw with the Bank of England meeting getting overshadowed by Brexit developments earlier this week, traditional market-moving economic releases are taking a back seat to geopolitical developments in the US as well.