The Federal Reserve cut rates by 25 basis points, as expected, triggering a big rally in the Dow. The Dow Jones hit new record highs, while the US Dollar plunged lower. The EUR jumped to 1.1750, while the GBP spiked to above 1.3400. This was a much expected boost to markets and a shot in the arm to the struggling US labour market. The tech heavy NASDAQ struggled, following weaker than expected earnings from Oracle and the market swapped out of that sector. The Fed may well cut rates again in the New Year, with the prospect of a new Governor and other board member replacements, by Trump appointees.The softer reserve allowed for further gains in commodity currencies, with the NZD breaking above 0.5800, while the AUD pushed over 0.6650. Australian Unemployment numbers improved, with the headline rate falling to 4.3%, as market focus may well turn to inflation.
