US dollar hammered

It shouldn’t have come as a surprise, but it did. On Wednesday, the Fed indicated that it’s very likely not going to rate the hikes again soon. The subsequent drop showed that investors were very optimistic about future rate hikes and then had to reverse their positions.

The Dollar drop turned into a rally for commodities. The oil rally also spilled over into energy shares and helped the S&P500 recover all of its earlier losses. Alphabet Inc sold off 4% and Apple has reclaimed its spot as the most valuable company. The ADP reports showed positive numbers – the ADP is also the best predictor for Friday’s NFP.

The EURUSD finally left its consolidation and traded right into a supply zone. The Fibonacci target is just under 1.14.
Yesterday's bullish bias on the USDCAD had to be reversed after the Fed's talk. The USDCAD sold off and moved right into demand at 1.373.