Dollar balloons, pound rebound stalls after Fed rate cut; euro chopped

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Dollar balloons, pound rebound stalls after Fed rate cut; euro chopped

On Wednesday, the 31st of July 2019, American dollar index (DXY) hit fresh a two-year-high, while euro tottered just a notch shy of 1 percent to $1.1074 and a rebound of British currency seemed to have stalled in the wake of bourgeoning surge of US dollar after Federal Reserve Chair Jerome Powell’s upbeat comments following a 25-basis point interest rate cut had started off a chop-chop for all of the six major currencies.

Aside from that, while being asked whether Wednesday’s (July 31st) rate-cut could mark the beginning of a lengthy policy easing cycle, stroking a much robust voice, Fed Chair Jerome Powell had been quoted saying to the reporters that US economy had become stronger than ever with a roughly 50-year-low unemployment figure, solid labor markets, bolstered consumer spending, while Fed would closely monitor economic data and act accordingly, which dampened outlook of global stocks further and exhaled a bullish bias for the American currency, Adding that two additional rate cuts could be a tough-ask following Wednesday’s Powell’s comment during a post-rate decision press conference, Chief investment officer at Hugh Johnson Advisors in Albany, Hugh Johnson said, “Two additional rate cuts are not written in stone by a long shot, and there’s been some talk about a pause.

Now you start to raise doubts about (the additional) cuts, then that’s not good news for the stock market”. Nonetheless, following Wednesday’s (July 31st) Fed rate decision that botched to meet investors’ expectations by a wider margin, MSCI’s gauge of global stock across that world that keeps track of stock exchanges of 49 countries was plummeted 0.70 percent, meanwhile emerging market stocks shed 0.59 percent and MSCI’s broadest index of Asia-Pacific shares outside Japan tottered 0.69 percent.

In the currency market, Dollar index added 0.52 percent to wrap up the day at 98.03, while Euro dropped just a notch shy of 1 percent to $1.1075 against its American counterpart. Concomitantly, Japanese Yen dropped 0.15 percent to 108.79 Yen per dollar at Wednesday’s (July 31st) market round off, while the safe-haven precious metal, sport gold lost more than 1.3 percent to wrap up the day at 14078.30 an ounce.