U.S. Dollar Weakens As Investors Await Fed Announcement

RTTNews | hace 981
U.S. Dollar Weakens As Investors Await Fed Announcement

(RTTNews) - The U.S. dollar lost ground against its most major counterparts in the European session on Wednesday, as investors focus on the Federal Reserve's monetary policy decision for any shift to a slower pace of tightening in the future.

The Fed will conclude its two-day meeting at 2:00 pm ET, followed by a press conference with Chairman Jerome Powell half an hour later.

Investors expect the Fed to raise its rates by 75 basis points later today, but they are divided on the possibility of a 75- or 50-bp hike in December.

Data from payroll processor ADP showed that U.S. private sector employment increased more than expected in the month of October.

ADP said private sector employment jumped by 239,000 jobs in October after climbing by a downwardly revised 192,000 jobs in September.

Economists had expected private sector employment to advance by 195,000 jobs compared to the addition of 208,000 jobs originally reported for the previous month.

The currency has been falling against its key counterparts in the previous session.

The greenback dropped to a 5-day low of 146.82 against the yen, from a high of 148.38 set at 6 pm ET. The greenback may test support around the 144.00 region, if it falls again.

The greenback weakened to 0.9943 against the franc and 0.9915 against the euro, down from its early highs of 1.0010 and 0.9870, respectively. The greenback is seen finding support around 0.96 against the franc and 1.08 against the euro.

The greenback declined to 0.5892 against the kiwi and 0.6430 against the aussie, after rising to 0.5834 and 0.6385, respectively in early deals. The greenback is poised to find support around 0.62 against the kiwi and 0.70 against the aussie.

In contrast, the greenback was trading higher at 1.3649 against the loonie. On the upside, 1.38 is likely seen as the next resistance level for the greenback.

The greenback reversed from an early low of 1.1527 against the pound, with the pair trading at 1.1475. Next key resistance for the greenback is seen around the 1.12 region.

At 2:00 pm ET, the Fed announces its decision on interest rate. The central bank is expected to raise the target range for the federal funds rate by 75 basis points to 3.75 percent to 4.00 percent.

read more
Commodity Currencies Rise Amid Renewed Tariff Concerns; USD Slide

Commodity Currencies Rise Amid Renewed Tariff Concerns; USD Slide

The commodity currencies such as Australia, the New Zealand and the Canadian dollars strengthened against their major counterparts in the early European session on Thursday, as traders are optimistic about an end to the tariff uncertainty after U.S. President Donald Trump made it clear that he will not extend the August 1 deadline for trade deals, though he gets aggressive with tariff imposition. They are also optimistic about a potential trade deal between the U.S. and the European Union.
RTTNews | hace 5h 52min
Yen Falls As Traders Speculate BoJ Rate Hike Pause

Yen Falls As Traders Speculate BoJ Rate Hike Pause

The Japanese yen weakened against other major currencies in the late Asian session on Wednesday, as traders reduced their bets on an immediate interest rate hike by the Bank of Japan (BoJ) due to worries about the possible economic effects of US President Donald Trump's trade tariffs.
RTTNews | hace 1
NZ Dollar Falls After RBNZ Rate Decision

NZ Dollar Falls After RBNZ Rate Decision

The New Zealand dollar retreated from recent highs against other major currencies in the Asian session on Wednesday, after the Reserve Bank of New Zealand's (RBNZ) widely anticipated decision to maintain rates constant.
RTTNews | hace 1