U.S. Dollar Remains Lower Ahead of FedThe dollar held a decline from yesterday against 10 major peers, its biggest in three months, as traders weighed whether the Federal Open Market Committee will alter the language in its policy statement today.
Australia’s currency weakened amid doubts a liquidity infusion yesterday by the People’s Bank of China signals a monetary policy shift in the South Pacific nation’s biggest trading partner. New Zealand’s currency fell after Westpac Banking Corp said Fonterra Cooperative Group Ltd., the world’s largest dairy exporter, will cut its milk payment forecast. The pound remained stronger before the release today of minutes from the Bank of England’s last meeting and a referendum on Scottish independence tomorrow.
“Traders are reluctant to buy or sell the dollar until they see the FOMC outcome,” said Etsuko Yamashit a, chief economist at Sumitomo Mitsui Banking Corp. in New York. “The market is on guard as there is no consensus view on how the statement will change.”
Australia’s currency weakened amid doubts a liquidity infusion yesterday by the People’s Bank of China signals a monetary policy shift in the South Pacific nation’s biggest trading partner. New Zealand’s currency fell after Westpac Banking Corp said Fonterra Cooperative Group Ltd., the world’s largest dairy exporter, will cut its milk payment forecast. The pound remained stronger before the release today of minutes from the Bank of England’s last meeting and a referendum on Scottish independence tomorrow.
“Traders are reluctant to buy or sell the dollar until they see the FOMC outcome,” said Etsuko Yamashit a, chief economist at Sumitomo Mitsui Banking Corp. in New York. “The market is on guard as there is no consensus view on how the statement will change.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.
Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Recommended Content
Editors’ Picks
EUR/USD met some decent resistance above 1.0700
EUR/USD remained unable to gather extra upside traction and surpass the 1.0700 hurdle in a convincing fashion on Wednesday, instead giving away part of the weekly gains against the backdrop of a decent bounce in the Dollar.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold keeps consolidating ahead of US first-tier figures
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Bitcoin price could be primed for correction as bearish activity grows near $66K area
Bitcoin (BTC) price managed to maintain a northbound trajectory after the April 20 halving, despite bold assertions by analysts that the event would be a “sell the news” situation. However, after four days of strength, the tables could be turning as a dark cloud now hovers above BTC price.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.