The Fed fires its last bullet…  Euro breaks back above $1.40…  AUD and NZD rally…  And Now… Today’s Pfennig!

As expected, U.S. Federal Reserve policymakers slashed a benchmark interest rate yesterday (Tuesday). But they cut it by a bigger-than-expected amount, and did so in an unconventional manner.

A Santa Rally for the currencies?…  Waiting for the FOMC…  AUD and NZD rally…  China to try and keep growth above 8%… And Now… Today’s Pfennig!

While the U.S. Federal Reserve is expected to cut its benchmark Federal Funds target rate to a record-low 0.5% at its policymaking Federal Open Market Committee meeting tomorrow (Tuesday), the European Central Bank (ECB) is signaling a reluctance to drop its key rate below 2.0%.

Dollar weakens to two-month low versus euro… Oil climbs nearly 7 percent; OPEC supply cut expected

Well we have made it to the end of another year, and this one has been quite a ride. This is the last full trading week of the year, so barring a huge rally, the Dow, NASDAQ, and S&P will all end the year with losses north of 30 percent.

In the currency market, the dollar dropped lower against the euro. Late Wednesday, the euro was trading at $1.2883 vs. $1.2707 on Tuesday.  The news of the day, which brought the dollar back from its lows vs. the euro, was the FOMC’s interest rate cut of a half-point, down to 1%.

U.S. equities rallied yesterday (Tuesday) as the U.S. Federal Reserve convened for the first day of a two-day meeting of its monetary policy committee.

Mini-currency rally is cut short … Is it Japan or U.S.? … Gold stages a rally…  Swiss francs remain well bid…
And Now… Today’s Pfennig!

More dollar strength… Retail Sales surprise… SARB raises rates! Gold on the slippery slope…