Global Themes

USD slips ahead of critical Fed meeting at 2.00am

The USD fell overnight as markets turned nervous towards the US dollar ahead of tonight’s critical meeting of the US Federal Reserve.

The greenback weakened as markets prepared for a potential Fed rate cut with the chance of a cut rising from 20% to 26% overnight.

Most analysts expect the Fed will hold steady on rates, but a more negative assessment of the US economy might see further US dollar pressure.

Boost

In other markets, the focus was on the euro after European Central Bank president Mario Draghi signalled he was willing to take action to boost inflation in the Eurozone.

The Aussie was higher in most other markets as better commodity prices provided support.

Fed to dominate

Tomorrow sees a huge amount of market events with the US Fed clearly dominating in terms of likely impact.

Around the region, March-quarter New Zealand GDP numbers are due with the market expecting a relatively firm 2.4% in annual terms.

Central banks will also remain in focus with the Bank of Japan and Bank of England both meeting.

Deliver the Daily Currency Market Analysis to my Inbox

Published five days a week, this newsletter provides day-to-day trends and activities affecting the market in easy-to-understand snapshots