Recently, the dollar was steady against other major currencies. This was when investors braced for a rate cut by the U.S. Federal Reserve.
In addition, there was an advanced reading of economic development in the third quarter that could shed light on the rate prospects.
The Sterling was also firm. The currency is holding below current five-month highs.
It was after Britain’s lower house of parliament accepted calling an early election in December. The call might disrupt the Brexit deadlock.
For now, the attention turned to the Fed. It is also anticipating another cut on its policy rate for the third time in a row. This happened after settling its two-day meeting last Wednesday.
There will be an advance reading on the economic growth data in the third quarter.
The reading is for further projections with inspection for clues on the economic outlook.
The scrutinizing comes ahead of other major data issues, such as Friday’s critical non-farm payroll report.
Concerns On The Slowing Consumer Part Of The Market
The head of the European global markets at MUFG in London, Derek Halpenny, stated, “In the last 4-5 weeks there has been a concern that consumer part of the market is slowing and that could mean more cuts next year.”
He added, “So what lies ahead the Fed meeting, the GDP data, payrolls will shape market anticipation in addition to what (Fed chief Jerome) Powell will say today.”
Elsewhere, the U.S. dollar was stable against the euro at $1.1117. It is also marginally lower against a basket of six major currencies at 97.630.
Meanwhile, the greenback was a little moved against the yen at 108.86.
The move is not far from its three-month high of 109.07 on Tuesday.
Moreover, investors are observing for any indication of possible further cuts. It is with futures pricing that recommends more easing, which is expected in 2020.
Traders expect the dollar to increase. If not, there are possible adverse outcomes.
Head of Japan markets research at JPMorgan Chase Bank, Tohru Sasaki said, “If the market is going to price at the end of a current rate-cut cycle, the dollar/yen could climb above 110 yen.”
He added, “On the other hand, if markets go to the price in two more cuts after this month’s anticipated cut, the pair could fall to mid-107-yen level.”
- Trading Instrument