The dollar surged from a hawkish statement

•      The dollar surged from a slightly hawkish statement

•      The Fed dropped the characterization of the US labor market slack as “significant” and appeared confident in the economy’s prospects

•      The Committee retained however the phrase to keep interest rates near zero for a “considerable time”

•      If incoming information indicates faster progress toward the Fed’s employment and inflation objectives, then increases in the target range for the federal funds rate are likely to occur sooner than currently anticipated.

•      DXY index jumped to an almost four-week high

•      I believe that the dollar probably ended its corrective phase

•      following the positive statement it should regain its glamour boosted by the relative strength of the US economy and the widening divergence between the monetary policy outlooks.

•      The Reserve Bank of New Zealand kept its official interest rate at 3.5%

•      But pointed to remain on hold before considering any changes: removed the phrase “we expect some further policy tightening will be necessary”

•      Today:

•      Germany: The preliminary German CPI and unemployment rate both for October

•      Eurozone: final consumer confidence for October

•      UK: The Nationwide house price index for October

•      US: The 1st estimate of GDP for Q3 and Core PCE deflator