The dollar literally plummets by -1% following Jerome Powell's dove-like remarks at the traditional post-FOMC press conference.

Wall Street and the bond markets - which have already been ultra-bullish for 7 weeks - fall into a state of unbridled euphoria: the Dow Jones (+1.2%) sets a new all-time record at 37.000Pts, T-Bond yields plunged by -20Pts to 4.000%, and 30-year yields eased by -13Pts to 4.17%.

This violent fall in yields pushed the dollar 1% lower against the euro (1.0895), -1.6% against the Australian dollar and -1.7% against the yen, which soared to 142.90.

The Dollar Index fell -1% to 102.85, the decline being limited by the relative weakness of the Swiss Franc (+0.4%) and the Pound (+0.45%).

For the third meeting in a row, the Washington-based institution left rates unchanged, a stance justified by the continuing slowdown in inflation: the FED takes note of this slowdown and even estimates - according to its own assessment methods - that core inflation is only rising by 3.1% over 12 months, and not 4% as revealed on Tuesday.

The FED indicates that rate hikes are beginning to have a dampening effect on activity, which is expected to slow in Q4.

Wall Street and Forex traders see this as confirmation of their most optimistic expectations, and once again, the timetable for a rate cut has been moved from May to March... with the hope of a reduction from -100 to -125Pts by the end of 2024.




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