The dollar fell to a one-month low as the Federal Reserve raised interest rates for the fourth time this year, with the possibility of a three hikes by early 2020.
Federal Reserve Chairman Jerome Powell said the bank would continue to cut its balance sheet by $ 50 billion a month, leaving the door open for further rate hikes based on economic data.
The US dollar fell against a basket of currencies today, reaching its lowest level since November 20 at 96.20 exceeding the uptrend line we mentioned earlier, and as it stabilized below 96.50 we may see further decline towards 95.50 and then 95.
The New Zealand dollar hit its lowest level since November 13 at 0.6723 in the wake of the New Zealand economy slowing, which is its lowest growth since the fourth quarter of 2013, with GDP rising by 0.3% in the third quarter versus expectations of 0.6% compared to second quarter growth by 1%.
The Australian dollar also hit its lowest level since November 1 at 0.7084, before rising significantly after employment data. The economy added 37,000 jobs in November, but unemployment rose to 5.1%.
The Japanese yen continued its advance against the US dollar, hitting its highest level since October 26, after the Bank of Japan kept its monetary policy unchanged, and remains optimistic about its outlook for the economy. USDJPY continued to fall reaching 111.60 levels.
Bank of England also kept its monetary policy unchanged and kept interest rates at 0.75%, pointing to the high uncertainty about Brexit. It also pointed out that the decline in oil prices is likely to push inflation to fall below the target was set at 2 which would constitute a support for the economy.
