Currency Updates

Unchanged Scenario

Yesterday the Feds surprisingly lowered the interest rates by 75bp to 3.5%. The cut was an attempt to prevent the economy from slipping into a possible recession. As for today the greenback showed mixed signals against major currencies.

Meanwhile, fears that the current collapse of the US economy may influence the neighboring markets, affected the globe as a whole. Markets anticipate the ECB which is fighting inflation pressure above 2% to maintain interest rates at 4% for some time despite high inflation. However, analysts expect a future cut in rates as to mitigate the European Economy. The pair is trading towards the downside to fetch a low of 1.4543 after recording a high of 1.4649.

Separately, the Pound gained at the start of today's secession against the US dollar, however, not long after that the royal pound dropped after comments by the BOE which added to the expectations of the February rate cut corroding the currency's yield appeal. The pair is hence at the downside recording at this hour a low of 1.9523 after fetching a high of 1.9615.

The Yen regained its footing against the dollar as worries about the financial market turmoil remained unchanged despite an emergency benchmark interest rate cut by the Feds, pushing the pair to the downside to record a low of 105.81 after recording a high of 107.37.