FX round-up: Mixed dollar follows Fed statement boost

The dollar was mixed on Thursday against most major currencies after having a positive reaction to the hawkish Federal Reserve statement.

The EUR/USD was boosted again but analysts fail to see this as a long-term rebound as it was too heavily oversold. The latest Fed statement revealed drastic changes to interests rates are unlikely at this stage but still could happen in the near future.

Alastair McCaig from IG noted: “With a little less negativity coming from UK economic data the pressure on GBP/USD has been more subdued, but like the euro traders would struggle to find too many reasons for a sentiment change.”

The euro was worth $1.13088 Wednesday afternoon while the dollar index, which measures the US currency against a basket of six others, fell 0.1% to $94.59.

Meanwhile the dollar traded at ¥118.434, and the pound ended up at $1.50453.

CMC Markets analyst Jasper Lawler said: “Commodity currencies AUD/USD and NZD/USD were falling fast on Thursday following the monetary policy statement of the Reserve Bank of New Zealand which jawboned the currency lower and confirmed the on-hold policy for rates.”

Analysts are starting to believe that the Reserve Bank of Australia might follow in the footsteps of China by slashing rates to combat lower inflation. The dollar was mixed on Thursday against most major currencies after having a positive reaction to the hawkish Federal Reserve statement.