According to Richard Franulovich, head of FX strategy at Westpac, the Fed’s decision to rebuild their balance sheet shouldn’t upset the USD much as shortdated bill purchases – to facilitate implementation of existing monetary policy – is a very different beast from large scale ECB/BoJ QE aimed at boosting credit, cutting risk premiums and lifting growth. Key Quotes “US-China trade talks unlikely to yield much, visa bans and blacklistings raising the hurdle for even a modest interim mini-deal. Trade and supply chain uncertainty likely extends deep into 2020. That will sap US and global growth yet further and compel more Fed cuts. Powell did not push back on expectations for an Oct rate cut and if anything stressed prospective downward revisions to employment trends.” “But USD should remain resilient and DXY support at 98-98.5 likely holds. Rates markets already fully price a 31 Oct Fed cut and the global economy is not faring any better. A more protracted easing cycle will weigh on the USD but past cycles suggests there are long lags at play and it won’t be a negative story for the USD until well into 2020.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street Forex News Today: Daily Trading News share Read Next Germany’s Scholz: German growth slowing partly due to Brexit FX Street 3 years According to Richard Franulovich, head of FX strategy at Westpac, the Fed's decision to rebuild their balance sheet shouldn't upset the USD much as shortdated bill purchases - to facilitate implementation of existing monetary policy - is a very different beast from large scale ECB/BoJ QE aimed at boosting credit, cutting risk premiums and lifting growth. Key Quotes "US-China trade talks unlikely to yield much, visa bans and blacklistings raising the hurdle for even a modest interim mini-deal. Trade and supply chain uncertainty likely extends deep into 2020. That will sap US and global growth yet further and compel more… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.