Traders forecast a dovish tone from Federal Reserve’s Powell. United States durable goods orders were seen to be slowing in July. Due to a trade deal relief, the yuan rises toward a seven-month high.
Investors refrained from taking risky bets. This was a day ahead of a key speech by Federal Reserve Chairman Jerome Powell. Thus, on Wednesday, the euro and the United States dollar traded cautiously.
During growing speculation, Powell could unveil a softer policy stance towards inflation at the annual Jackson Hole retreat on Thursday. Thus, investors brace for possible new steps from the Federal Reserve to prop up the United States economy.
Stephen Innes works at AxiCorp. He is chief global markets strategist there. He wrote, in a morning note, that either the United States dollar rips higher for a few weeks or the Chairman drops something juicy for ‘reflationistans’ (aka the United States dollar bears).
He further added that he would never bet against the Federal Reserve sounding dovish amid an easing cycle.
The dollar index tracks the greenback’s value against a basket of currencies. The index was up by 0.16% to 93.11. This was after taking a hit on Tuesday following some data showing the United States consumer confidence tumbling to its lowest in more than six years.
On Wednesday, data will most probably show that the growth in United States durable goods orders slowed in July. Thus, it will highlight policymakers’ concerns about the economy.
Ipek Ozkardeskaya works at Swissquote Bank. She is a senior analyst there. She told her clients that a softer-than-forecasted figure should revive the Federal Reserve doves. Meanwhile, a better-than-forecasted read would improve the mood of investors. Nevertheless, it should not have a material impact on dovish Federal Reserve expectations. This is because it is clear to everyone that the economy needs sustained support for posting positive results.
The dollar stood against the euro at $1.1818.
Key Points: AUD/JPY broke below a rising wedge, signalling possible bearish momentum, with immediate resistance at 103.00 and support at…
Key Points EUR/JPY Rises to 168.25: Strengthened by robust Eurozone economy and steady ECB policy. Eurozone GDP Grew by 0.3%…
Key Points: Nio's shares hit 44.20 HKD, up 20%, with electric vehicle deliveries up 134.6% year-on-year to 15,620. BYD leads…
Key Points: Ethereum fell sharply from $3,355 to a low of $2,813, reflecting high volatility and sensitivity to market dynamics.…
Key Points Nikkei 225 slightly fell by 0.1%, while the Hang Seng index surged by 2.4%. USD/JPY increased slightly, highlighting…
Key Points: Gold prices rose on MCX India to ₹71,278/10 gm and COMEX US to $2,328/oz. The US Dollar Index…
This website uses cookies.