Fed had made it clear that zero interest is there to stay and this will decision will cause the USD to dominate currency will hike lower. On their side, they felt that this situation will open further bond purchases.
What we could project is that US domination currency will be negative for another 18 months (as projected by the dot plot interest rate doesn’t hike until the end of 2020) will putting trader to short position over other dominated currency.
With that, we could see that euro, sterling, the Australian, Canadian and NZ dollars shows climbed high versus the USD. The biggest receiver was the AUD which rose more than 1% to its strongest level since July 2019.
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