The US Dollar Index (DXY) surged toward the 100.40 level on Wednesday after the Federal Reserve’s (Fed) June policy decision, in which the central bank left interest rates unchanged at 3.50%-3.75%, as widely expected, in Kevin Warsh’s first meeting as Fed Chair.
Kit Juckes at Societe Generale highlights that recent G10 central bank actions have not sparked major FX moves, with EUR/USD still range-bound. He notes deeper Eurozone GDP forecast cuts versus other regions.
UOB Global Economics & Markets Research highlights that Gold advanced as expectations for another Fed hike this year eased following an interim US-Iran peace deal that pushed Oil and inflation expectations lower.