No reprieve for the dollar after the Fed
The dollar index (DXY) has fallen below 90 for the first time since April 2018 as the greenback eases further towards the year-end, getting no help from the Fed yesterday.
The central bank reaffirmed that they will keep the printing press running until they made "substantial progress" on employment and price stability, with Powell reassuring the market that they are still keeping an extremely dovish stance.
Powell also made it clear that they won't attach any specific figures to what "substantial progress" would mean and that is rather typical of the Fed all things considered.
So, all the market can do now is go by the Fed communication and yesterday's one was rather clear. Although, there is still scope for some pullback amid year-end flows.
In any case, the dollar is down today across the board with EUR/USD climbing further above 1.2200 to 1.2236. GBP/USD is making fresh highs of 1.3579 on a break above 1.3500 while AUD/USD is also up to its highest levels since June 2018 above 0.7600.
