{"id":69766,"date":"2015-03-18T18:56:59","date_gmt":"2015-03-18T22:56:59","guid":{"rendered":"http:\/\/countingpips.com\/?p=69766"},"modified":"2015-03-18T19:15:31","modified_gmt":"2015-03-18T23:15:31","slug":"meteoric-selloff-of-the-dollar-post-fomc","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/03\/meteoric-selloff-of-the-dollar-post-fomc\/","title":{"rendered":"Meteoric Selloff Of The Dollar Post-FOMC"},"content":{"rendered":"<div id=\"inves-505172455\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">March 18, 2015<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>The US dollar\u00a0plunged nearly 2 percent against a trade-weighted basket of currencies on Wednesday, as the Federal Reserve opened the door to a June rate hike, but also indicated it would go slow in normalizing monetary policy.<\/p>\n<p>These mixed signals resulted in a sharp selloff of the US dollar, which declined across the board in the late-afternoon session. The dollar\u00a0index fell 1.8 percent to 97.83, its lowest level since March 9.<\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-199318\" src=\"http:\/\/www.fxtimes.com\/wp-content\/uploads\/2015\/03\/Screenshot-169.png\" alt=\"Screenshot (169)\" width=\"741\" height=\"486\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>Below is a sample of some of the carnage that ensued following the Federal Open Market Committee (FOMC) rate announcement.<\/p>\n<ul>\n<li><strong>EURUSD<\/strong> advanced 236 pips to 1.0829 after reaching an intraday high of 1.1016.<\/li>\n<li><strong>USDJPY<\/strong> declined 1 percent to 1.2019 after bottoming out at 1.1939.<\/li>\n<li><strong>GBPUSD<\/strong> advanced 189 pips to 1.4938, easing from an intraday high of 1.5162.<\/li>\n<li><strong>USDCAD<\/strong> declined 203 pips to 1.2489, having reached a daily low of 1.2452.<\/li>\n<li><strong>USDCHF<\/strong> declined 214 pips 0.9846, falling below parity for the first time in more than a week.<\/li>\n<li><strong>USDSEK<\/strong> declined nearly 1 percent to 8.6092.<\/li>\n<\/ul>\n<p>The Federal Reserve removed the word \u201cpatient\u201d from its rate decision on Wednesday, but downgraded its GDP and inflation forecasts, signalling policymakers are in no rush to bring interest rates back to normal levels. Fed officials also decreased their median estimate for the federal funds rate to 0.625 percent for the end of the year\u00a0from the previous estimate of 1.125 percent.<\/p>\n<p>The Forex market will probably stabilize in the coming days as investors re-evaluate their positions. Although US interest rates are expected to rise very gradually, the Federal Reserve is the only major central bank seriously considering normalizing policy. According to several analysts, the dollar index is fairly valued at 100.<\/p>\n<p><strong><i>For more late-breaking Forex news, currency analysis and investment tools, visit\u00a0<\/i><a href=\"http:\/\/www.fxtimes.com\/\"><i>http:\/\/www.fxtimes.com<\/i><\/a><i>.<\/i><\/strong><\/p><div id=\"inves-1437478642\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US dollar\u00a0plunged nearly 2 percent against a trade-weighted basket of currencies on Wednesday, as the Federal Reserve opened the door to a June rate hike, but also indicated it would go slow in normalizing monetary policy. These mixed signals resulted in a sharp selloff of the US dollar, which declined across the board in [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-69766","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/69766","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=69766"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/69766\/revisions"}],"predecessor-version":[{"id":69768,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/69766\/revisions\/69768"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=69766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=69766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=69766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}