Pip Diddy

Trump’s refusal to green light a temporary funding solution kept the possibility of a partial government shutdown in play, adding to the dollar’s woes.

Despite the risk-off vibes in Europe, the Aussie and Kiwi both staged a broad-based recovery as the Greenback slumped across the board and after both risk-sensitive currencies got whupped during the earlier session.

The post-FOMC party for the bears extended into the Asian session as traders priced in higher borrowing costs and weak data releases.

As expected, the Fed hiked rates during their December announcement, but what took many by surprise were their plans to keep tightening next year. 

The FOMC statement is coming up, so price action was a bit choppy. There were directional movements, though, since the euro and the Loonie were vying for the top spot, while the pound was under intense bearish pressure.

Extension was the name of the game during the Asian session, as traders mostly took cues from previous sessions ahead of today’s top-tier events.

Crude oil suffered another wipe out during the session, dragging the positively correlated Loonie underwater with it. Markets were also extra anxious ahead of this week’s FOMC decision.

The Greenback was under bearish pressure and was the weakest currency of the session. One currency’s pain is another currency’s gain, though. And in this case, two currencies were gaining, namely the euro and the pound.

Global growth concerns weighed on the Asian bourses. Luckily for AUD and NZD, the bulls paid more attention to domestic data.

Risk-off flows extended their stay in the financial markets as traders might be lightening up on their positions ahead of the Fed decision later in the week.