The US dollar plunged across the majors on Wednesday, but the decline came primarily during the European trading session and start of the New York trading session in anticipation of the Federal Reserve’s rate decision.
The advanced GDP reading for the U.S. is expected to show that the economy contracted 0.5% in the third quarter. Economic activity has weakened significantly throughout the second half of the year as the effects of the fiscal stimulus checks abate, and conditions may only get worse as the jobless rate continues to rise.
The markets were prepared for the 50 basis point rate cut from the Federal Reserve today, but can further easing turn the dollar’s three-month and multi-thousand point trend?
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