FX market was all about getting directions from central bankers today as both the US and New Zealand announced its interest rate decision.
The US Federal Reserve hiked its interest rate by 25 basis points as expected. The statement said the Fed still foresees another rate hike in December, three more next year, and one increase in 2020. It also sounded optimistic over three more years of economic growth.
However, President Donald Trump again expressed his frustration with the Federal Reserve, just hours after the interest rate announcement.
Meanwhile, the Reserve Bank of New Zealand kept its interest rate on hold at a record low of 1.75 per cent. The country’s cash rate has not been moved since November 2016.
With interest decisions out of the way, markets will now turn their focus to upcoming US GDP and Consumption expenditure numbers tomorrow. So we’ll see how these releases affect the US dollar and our currency basket tomorrow.