The Dollar was sold off during yesterday’s session and consequently struggled after the Federal Reserve kept monetary policy steady on Wednesday night and projected a less aggressive path for rate hikes in coming years.
While the Fed strongly signalled it could tighten monetary policy by the end of the year, the "dot plot," which it uses to signal its outlook for the path of interest rates, shows that policy makers expect one quarter-point rate increase this year, followed by just two next year.
Later on Bank of England Governor Mark Carney spoke at an event in Berlin about Green finance. Carney said long-term financing of green projects in emerging markets would promote financial stability. He urged Germany to use its G20 presidency in 2017 to make progress and has previously warned of climate change risks for the finance industry.
Carney said that in theory capital should flow from advanced to emerging economies due to high returns. In practice, however, the opposite has happened - and this has driven down bond yields in advanced economies. By ensuring that capital flows finance long-term projects in countries where growth is most carbon intensive, financial stability can be promoted," he said.
Mario Draghi spoke at the conference of the European Systemic Risk Board where he took on critics from the banking sector, who have blamed the ECB’s negative interest rate policy for squeezing their margins.
Draghi said the eurozone has too many banks, blaming overcapacity rather than the European Central Bank’s monetary policy for low profits among commercial lenders.
No major announcements