Markets:
S&P 500 down 0.1%WTI crude oil down 50-cents to $64.04US 10-year yields up 5.4 bps to 4.08%Gold down $32 to $3657USD leads, EUR lagsAhead of the FOMC decision there were modest signs of profit taking as stock markets edged lower, the US dollar rose and gold dipped. As usual, it was mostly sideways trading until the decision.
The initial reaction to the Fed announcement was dovish as the median showed two more cuts this year but a second look began to reverse that. The shift was a narrow 10-9 one and tilted by Miran's inclusion at the Fed. The bigger reversal came during Powell's press conference. The market wanted to hear a strong shift towards the employment mandate but he downplayed the NFP benchmark revisions and highlighted immigration as the main driver of the changing jobs market.
A particularly notable headline was him calling it a 'risk management' cut and saying they will be data dependent going forward. He balanced that by saying inflation risks had diminished since April but there were a few minutes of very aggressive US equity selling.
After the press conference the temperature came down and the dip buyers waded in. That led to a roughly flat finish in US equities.
The FX moves were more-notable as USD/JPY was at 146.25 ahead of the FOMC, fell to 145.50 and is now trading at a session high of 147.02.
It usually takes some time for Fed moves to shake out. Current pricing is for 43.7 bps in easing before year end with that December meeting being a real wild-card. Historically though, when the Fed starts cutting, it tends to continue cutting.
This article was written by Adam Button at investinglive.com.Hence then, the article about investinglive americas fx news wrap fed and bank of canada both cut a quarter point was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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