Thursday, 17 October 2019
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
Dollar Pushes Higher as Markets Dial Back Fed Rate Cut Bets
Wednesday, 26 June 2019 15:50 WIB | CURRENCIES |DOLLAR

The U.S. dollar edged higher on Wednesday, pulling away from a three month low as markets dialed back expectations for aggressive interest rate cuts by the Federal Reserve next month, but expectations for some monetary easing checked the currency™s gains.

Expectations for a half percentage point cut at the Fed™s July meeting receded after St. Louis Fed President James Bullard said Tuesday that such a move "would be overdone".

Separately, Fed Chairman Jerome Powell said the central bank is "insulated from short-term political pressures," pushing back against U.S. President Donald Trump's demands for a significant rate cut.

The comments tempered expectations for aggressive easing, but investors are still expecting at a quarter percentage point cut next month.

The U.S. dollar index against a basket of currencies edged up to 95.75 by 02:44 AM ET (06:44 GMT) on Wednesday, off a three-month low of 95.36 reached on Tuesday.

The dollar pushed higher against the yen, but remained within striking distance of five-month lows as heightened tensions between the U.S. and Iran underpinned demand for safe-haven currencies.

However, trading is likely to subdued as the focus shifts to a meeting between Trump and Chinese President Xi Jinping at a Group of 20 summit over the weekend, but expectations are low for a breakthrough that would end the dispute between the world™s two-largest economies.

œPowell is worried about curbing excess expectations, but Treasury yields are clearly heading lower and U.S. economic data are not looking great. A rate cut in July is a done deal.

The U.S. currency was up 0.2% at 107.38 yen after falling to 106.79 on Tuesday, its lowest since its flash crash in early January.

The euro was little changed against the dollar at 1.1356, rowing back slightly from Tuesday™s three-month high of 1.141.

The British pound was down 0.2% at 1.2669 before the Bank of England publishes its closely-watched quarterly inflation forecasts later on Wednesday.

Source : Investing.com

RELATED NEWS
Sterling, British Stocks Ride Rollercoaster of Brexit Deal Hopes...
Wednesday, 16 October 2019 23:39 WIB

Sterling swung around five-month highs on Wednesday and stocks in London cut their losses amid a blizzard of contradictory headlines about whether Britain and the European Union were on the verge of a...

Dollar dives to four-week lows as trade tensions dominate; yen gains...
Wednesday, 16 October 2019 15:24 WIB

The dollar headed toward a four-week low against its rivals on Wednesday on concerns that elevated trade tensions between Washington and Beijing will continue to weigh on the global growth outlook. R...

Sterling gives up some gains as Brexit optimism curbed...
Wednesday, 16 October 2019 08:21 WIB

The British pound fell from its highest level in almost five months versus the U.S. dollar on Wednesday as investors started to question their optimism about Britain's negotiations to leave the Europe...

Pound and UK Stocks Surge on Report EU, UK Close to Brexit Draft Deal...
Tuesday, 15 October 2019 23:25 WIB

Sterling jumped against the dollar and the euro while British stock prices and government bond yields rose in late afternoon trading on Tuesday after a Bloomberg report that British and European Union...

Pound Leaps Again as Barnier Stokes Brexit Deal Hopes...
Tuesday, 15 October 2019 15:15 WIB

The British pound took center stage again on Tuesday, rising sharply against the dollar and euro on renewed speculation of a deal to allow the U.K. to leave the EU smoothly at the end of the month. B...

LATEST NEWS
Stocks Turn Mixed Midday Despite Lingering Worries on China Relations, Weak Retail Sales

Stocks were little changed midsession Wednesday, as tensions between the U.S. and China over Hong Kong protests weighed on efforts to complete a trade deal, and after a weak retail sales report offset better-than-expected corporate earnings...

Sterling, British Stocks Ride Rollercoaster of Brexit Deal Hopes

Sterling swung around five-month highs on Wednesday and stocks in London cut their losses amid a blizzard of contradictory headlines about whether Britain and the European Union were on the verge of agreeing a Brexit deal. In another volatile day...

European Stocks Close Flat as Brexit Talks Hang In The Balance

European stocks traded without any real direction Wednesday as investors pause for guidance on the likelihood of an imminent Brexit deal between the U.K. and the EU. The pan-European Stoxx 600 slightly pared early losses to end the session just...

POPULAR NEWS
Gold Flirts With $1,500 Again on New Trade War Worries
Tuesday, 15 October 2019 03:33 WIB

What™s bad for trade is good for gold. The yellow metal found favor again with haven investors on Monday, flirting with the key bullish level of...

Gold Posts Lowest Close So Far This Month as Investors Weigh Trade Deal, Earnings Season
Wednesday, 16 October 2019 03:44 WIB

Gold prices declined on Tuesday to mark their lowest settlement month to date, as investors awaited clarity on U.S.-China trade talks and as...

Gold edges higher as Brexit uncertainty spurs safe-haven bid
Wednesday, 16 October 2019 08:48 WIB

Gold prices edged higher on Wednesday after shedding nearly 1% in the previous session, as it remained unclear if Britain could avoid postponing its...

Gold Edge Higher on Trade Optimism; Palladium at Record
Monday, 14 October 2019 16:23 WIB

Gold holds below its 50-day moving average after dropping last week on U.S.-China trade optimism. Palladium hit a fresh record. Spot...