The Greenback Weakens ahead of the Crucial Federal Meeting

The Greenback Weakens ahead of the Crucial Federal Meeting

On Tuesday, the greenback weakened as investors looked forward to the crucial Federal Reserve’s September monetary policy meeting.

Accordingly, the US dollar index pared its previous gains as it plunged 0.14% to $93.15.

Market participants focused on the two-day Federal Reserve meeting that will start later this day.

Also, traders eyed the press conference of Fed Chair Jerome Powell on Wednesday.

Subsequently, analysts forecasted that the central bank would potentially release its anticipated tapering timeline.

In addition, the said meeting would set the stage for the US economic outlook as it would include updates on economic projections.

Furthermore, the market also turned its attention to the release of US housing data this week.

Consequently, most forecasted housing sector data decreased amid the supply chain shortages and hike in home prices.

For instance, the existing home sales, a key indicator of economic strength, edged down to $5.89 million from July’s data of $5.99 million.

Likewise, analysts estimated 1.60 million building permits issued in August, declining from the previous data of 1.63 million.

Meanwhile, the Chinese Yuan against the greenback hiked 0.14% to $6.47 amid the China Evergrande crisis. 

Investors rattled as the property developer neared the brink of default and could significantly impact the global economy.

Then, the Swiss franc plummeted 0.27% to $0.93, while the New Zealand dollar climbed 0.09% to $1.03.

The euro improved 0.07% to $1.17 as the Japanese yen climbed 0.11% to $109.50.

Similarly, the Australian dollar surged 0.22% to $0.73 as the Indian rupee inched down 0.01% to $73.65.

On the other hand, the Canadian dollar shed 0.52% to $1.28 as the Singapore dollar fell 0.10% to $1.35. 

GBP to USD Exchange Rate Up as Greenback Weakens

Meanwhile, the GBP to USD exchange rate hiked as the greenback weakened.

The GBP to USD exchange rate soared 0.18% to $1.37 as it recovered from its previous losses. 

Moreover, the UK CBI Industrial trends orders widened 4.00 points to 22.00 net balance from its previous 18.00 net balance.

The leading indicator of business conditions also beat the market expectations of 15.00 net balance. 

Consequently, the August public sector net borrowing extended to $27.06 billion from the previous figure of $8.49 billion.

In addition, the reported data escalated from the forecasted $20.18 billion.

Furthermore, the yen exchange rate to sterling enhanced 0.32% to $149.88 as the greenback declined.

Then, the euro exchange rate to sterling plunged 0.09% to $0.86.