» Forex - Dollar slid to record low against majors ahead of Fed

The Dollar slid to a record low against a basket of major currencies on Monday, extending its broad sell-off on expectations that the Federal Reserve will trim interest rates this week and possibly again later this year. The Fed is widely seen cutting rates by 0.25bp to 4.5% on Wednesday, while expectations are building for a follow-up cut in December to limit economic damage from the housing market’s downturn; The BOJ is widely expected to keep rates on hold at 0.5% in the coming months as it waits to see more evidence of the US economy’s health and gauge the potential impact on Japan; Dominant themes of the market at the moment: the Australian Dollar, higher Gold prices are a positive along with the expectations for a Reserve Bank of Australia rate hike next month. The Canadian dollar, the Oil price surge is seen as a boon for the energy exporter.

Source : ACM

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