The USD slumped to new lows against all major currencies (apart from the JPY) as the Fed delivered on expectations of 1/4% rate cut at mid-week. The rate cut came with a statement that was roundly considered more hawkish than most had been expecting, but still the US dollar could find no support. Prior to the Fed's rate decision, 3Q advance GDP came in well above consensus forecasts at 3.9%, but the dollar stayed soft. The same effect was seen on Friday when Oct. NFP data showed an increase of 166K new jobs, nearly double consensus estimates, and the dollar declined to fresh lows. (See more on the NFP report below.) Bottom line--the USD continues to suffer from an overwhelmingly gloomy outlook on the direction of the US economy and interest rates, and there appears to be no light at the end of the tunnel.  Full text »

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