Dollar Edgy as Investors Look forward to Fed’s Decision
Staying near its multi-month low against a biased basket of peers as investors look forward to the day’s #Federal Reserve Bank policy gathering is the US dollar index. Investors use the #dollar index to evaluate the relative strength of the USD versus its peers, and it has shed over 35 of its value over the last 2-weeks.
The dollar index was seen touching 95.663 .DXY earlier today, a level that has not been reached since October 2015, which was months before we had the rate hike by the Federal Reserve. The #greenback remains under pressure in terms of pair trading.
The 10:53 GMT report from London this morning, shows the dollar index trading at 96.25 .DXY. Trading at ¥115.0550 is the USD/JPY pair, matching a 0.05% decline. Trading higher at $1.4509 is the GBP/USD, a move that places it 0.27% higher; as we had the pair ranged from $1.443-$1.4512 during today’s trading session. Trading at $0.7101 is the AUD/USD, an appreciation of 0.31% for the pair.
The #Federal Reserve Bank Chair, #Janet Yellen had assured markets last year that it will proceed towards further rate hikes in 2016. Howbeit, the volatility that is being felt in the global economy have continued to a point where uncertainties holds sway.
The demand for the U.S. dollars has receded in the midst of an uproar for safe haven currencies i.e. the Japanese Yen and the #Swiss Franc. There are hopes within the investment community that after today’s speech from the Fed chair, they’ll be able to measure the possible direction of the #greenback.