Fed Holds Rates as Dollar Weakens Amid Weakening Growth

The Federal Reserve (FOMC) held interest rates steady at 3.5-3.75 percent in a rare three-way-debated meeting, with three officials dissenting in favor of a 25bps hike.

However, the hawkish optics were quickly overtaken by weak US data: Q2 GDP slowed to 1.5 percent annualized, below the 2.3 percent consensus, on softer government spending and a wider import drag.

The dollar broadly weakened, with the DXY dropping roughly 0.8 percent to close near 100.00.