NEWS / Foreign Exchange

31st October Meeting Review

For the second time in as many meetings, the Federal Reserve cut a key interest rate to ensure against a possible slowdown in the economy. The Fed's policymaking Federal Open Market Committee lowered its most important federal funds rate target to 4.5 pct. "Economic expansion will likely slow in the near??’term," the FOMC said in a written statement accompanying the decision.

Check the effect that the minutes are having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

• ?· Board of Governors of the Federal Reserve System
• ?· View the past interest rates data on our Economic Time series
  
  

In-Depth Analysis

• ?· Today's Top Momentum Movers - Dollar Falls on Rate Cut by TheFXMarkets.com
• ?· Daily Fx Strategy - Fed's Hawkish Cut Extends Dollar Damage by CMC Markets
• ?· Wakeup Call on Forex Markets -  FED Cuts 25 bp as largely expected by Saxo Bank
• ?· London Bullion Report - Rate cut lifts gold futures above $800, spot meets strong resistance by The Bullion Desk
• ?· Daily Forex Commentary - FED hiked & Norges Bank unchanged by Jyske Bank
• ?· Daily Market Briefing - Euro Touches 1.45 After FOMC by FXCM
• ?· Start the Day - Federal Reserve cuts 25 basis points off Fed Funds target rate to 4.50% by Mizuho Corporate Bank
• ?· Morning Report - USD falls further despite expected US interest rate cut by Westpac Institutional Bank
• ?· Overnight Briefing: Far East Timezone - Stocks Race to New Peak after FED Rate Cut by Jyske Bank
• ?· Daily Forex Outlook - Federal Reserve cuts rates by 25 basis points, buying time for further movements by Easy Forex
• ?· European and US summary - USD Struggles Despite FOMC and GDP by Forexnews.com
• ?· Daily Global Commentary - Fed Lowers Funds Rate, But Conveys December Rate Cut Is Not Certain by Northern Trust
• ?· Daily Forex Strategy Briefing - USD Falls after FOMC Rate Cut by CMS Forex
  
  

Related News

• ?· Odds of another rate cut decline after Fed says risks are now balanced (Thomson Financial News)
• ?· Rate Futures Prices Plummet After FOMC Cuts Rate By 25 BPs (Dow Jones)
• ?· Bernanke to testify at Joint Economic Committee hearing next week (Thomson Financial News)
• ?· Dollar slumps as Fed announces rate cut (Thomson Financial News)
• ?· EUR/USD hit a record high at 1.4505 after the Fed Cut by 25bps (FXstreet.com)
  
  

Analysts' comments

• ?· Senior currency strategist at the Bank of New York:
  "The stock market is going to think very highly of this (rate cut), but it will continue to undermine the dollar." - AP
  
• ?· Ashraf Laidi, chief currency analyst at CMC Markets U.S.:
  "Currency traders are not buying into the relative hawkishness cropping up in this month's statement. While the outlook for the Fed is between further rate cuts and no rate cuts ... rates will remain unchanged if not go up for foreign banks." - Thomson Financial News