Our downside target of 90 has now been met. There is not too much bang for the Buck via the FOMC as a knee-jerk rebound on initial hawkish market perceptions quickly faded and reversed in wake of Fed chair Powell’s more dovish/cautious press conference reiterating high uncertainty over the near term economic outlook and repeating that accommodative policy will remain in place until substantial progress towards inflation and employment goals is seen. In short, no rate normalisation for some time even though a couple of dot plots pencil in hikes in 2023, while QE may yet be expanded/extended, and any tapering will be flagged well in advance to avoid another tantrum. Hence, plenty to counter disappointment over no shift in the WAM towards the longer end of the curve and the Greenback has subsequently fallen further, with the index struggling to keep sight of the 90.000 handle between 90.282-89.879 parameters amidst all round losses ahead of a raft of US data.
Prior chart:
Earlier chart:
Prior chart:
Earlier chart:
