Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - Dollar Slides to Day’s Lows Ahead of Fed Meeting

Published 25/09/2018, 15:16
Updated 25/09/2018, 15:24
© Reuters.  Dollar slides to day’s lows ahead of Fed meeting

© Reuters. Dollar slides to day’s lows ahead of Fed meeting

Investing.com - The dollar slid to the lowest levels of the day against a currency basket ahead of the two-day Federal Reserve meeting beginning later Tuesday, at which it was widely expected to hike rates for the third time this year.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.27% to 93.61 by 10:16 AM ET (14:16 GMT).

The Fed was to begin its policy meeting later in the day, with a quarter point rate hike widely expected by markets at the conclusion of the meeting Wednesday.

Data on Tuesday showed that confidence among U.S. consumers rose to its highest level in 18 years in September, bolstered by a strong economy and robust job growth.

Trade concerns remained to the fore after the U.S. and China imposed fresh tariffs on each other’s imports on Monday, escalating a trade spat which markets fear could act as a drag on global growth.

The dollar was little changed against the yen, with USD/JPY at 112.87.

The euro was higher, with EUR/USD advancing 0.5% to 1.1789, after hitting a three-and-a-half month high of 1.1814 on Monday.

The single currency remained supported after European Central Bank President Mario Draghi said the pickup in inflation in the euro zone was "relatively vigorous" and expressed confidence that acceleration in wage growth would continue.

However Draghi also reiterated a pledge to keep euro zone interest rates on hold at their current record lows “through the summer” of next year.

Sterling also pushed higher, with GBP/USD rising 0.32% to 1.3161, but uncertainty over Brexit continued to cloud the outlook.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.