XE Market Analysis: Asia – Oct 23, 2015

The dollar rallied broadly after China surprised with another rate cut. The greenback traded to better than one-month highs against the yen, and two-month highs versus the euro. It appears a Fed rate hike is not required to see the dollar rally, as the rest of the world remains in easing mode. The PBOC cut will add greatly to the chances for BoJ action on the stimulus front next week, while the ECB signaled coming easing action yesterday. EUR-USD fell to lows under 1.1010 through the session, as USD-JPY stormed through its 200-day moving average at 120.98, on its way to highs of 121.28.