The head of the Federal Reserve Jerome Powell will testify on the Semiannual Monetary Policy Report on Tuesday and Wednesday
Evergreen buck goes down as traders wait for Fed verdict
On Tuesday, the evergreen buck slumped due to the fact that market participants waited for news from the key US bank’s latest policy gathering.
The measures utilized to gauge the purchasing potential of the key American currency against a number of its main rivals the USD index went down by 0.14% ending up with 96.41 following an overnight maximum of 96.63.
With the Federal Reserve generally anticipated to have rates increased by up to 25 basis points for the fourth time in 2018 on Wednesday, market participants will be closely watching for any fresh remarks from Fed officials on probable policy changes next year.
Fed representatives, including Fed Chair Jerome Powell, have already told that interest rates are approaching neutral. What’s more, they’ve become more cautious about the major bank’s tightening policy against the backdrop of worries of decelerating global surge.
By the way, American leader has several times criticized the US main financial institution for lifting interest rates. On Monday, Trump told that it was incredible that the Federal Reserve is currently planning another interest rate lift.
Versus the safe-haven Japanese yen the evergreen buck declined. As a matter of fact, the currency pair USD/JPY went down by 0.3% being worth 112.51.
Meanwhile, the UK currency managed to leap. The currency pair GBP/USD tacked on by up to 0.35% demonstrating a reading of 1.2661. As for the common currency, it was backed by the lower greenback. The currency pair EUR/USD surged by 0.2% trading at 1.1372.
In addition to this, the currency pair NZD/USD managed to leap by approximately 0.8% coming up with an outcome of 0.6861. The currency pair AUD/USD jumped by about 0.3% trading at 0.7197. Additionally, the Canadian dollar dived. The currency pair USD/CAD soared by 0.08% hitting 1.3417.
The United States will publish the non-farm employment change, also known as non-farm payrolls (NFP) at 15:30 MT time on February 7.
The level of non-manufacturing PMI for the United States by the Institute of Supply Management will be published at 17:00 MT time on February 5.
The Federal Open Market Committee will publish its meeting minutes on February 19, at 21:00 MT time.
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