Forex Today: Dollar weakness continues as investors eye FOMC Minutes
|What you need to know on Wednesday, May 19:
The broad dollar’s weakness persisted. The greenback fell against all of its major rivals, with EUR/USD and GBP/USD nearing this year highs, the first settling above 1.22 and the second just below the 1.4200 mark.
The greenback fell after some US Federal Reserve officials reiterated that they will maintain the current ultra-loose monetary policy regardless of the latest uptick in inflation. The American currency recovered some ground during the US afternoon but remained the weakest currency across the FX board.
The AUD/USD pair settled around 0.7800, backed by encouraging RBA Meeting Minutes and intraday gold gains. USD/CAD, on the other hand, was affected by falling oil prices and the poor performance of European and American equities.
Crude oil prices fell on market talks suggesting a breakthrough at Vienna talks over an Iranian nuclear deal. However, Mikhail Ulyanov, Russian representative later clarified that significant progress has been achieved, but also that unresolved issues still remain and the negotiations will continue. Nevertheless, WTI ended the day in the red at $ 65.50 a barrel.
Gold prices continued to advance. The bright metal reached $ 1,874.91 a troy ounce, its highest since last January, although it finished the day pretty much unchanged at around 1,867.
The focus shifts to the FOMC Meeting Minutes, to be out this Wednesday. The dollar may fall further as the US central bank will likely repeat its message.
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