Breaking News
0
Ad-Free Version. Subscribe now to follow markets, faster and distraction-free. More details

FOREX-Dollar edges before Fed meeting, euro slips

ForexJan 27, 2021 10:18
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

* Dollar edges up
* Euro down 0.1%
* Sterling hits April 2018 high
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

By Ritvik Carvalho
LONDON, Jan 27 (Reuters) - The dollar edged higher against a
basket of currencies on Wednesday as markets waited for comments
from Federal Reserve Chair Jerome Powell, who is likely to renew
a commitment to ultra-easy policy. The dollar reversed declines against riskier currencies,
even as pandemic recovery hopes got a boost from the
International Monetary Fund's upgrading its forecast for 2021
global growth. Treasury yields, whose rise had supported the dollar at the
start of this year, declined overnight amid caution about the
eventual size of and delays to President Joe Biden's $1.9
trillion fiscal stimulus plan. "While the Fed had been consistent for the past few months
that the balance of risks was still to the downside, we could
see a more neutral stance being taken," said John Velis, FX and
macro strategist at BNY Mellon.
"This would be seen as a marginally hawkish turn on the
Committee, but we think that the Chair will make it quite clear
that neither interest rate rises nor any quantified timeline for
tapering bond purchases is under consideration."
The Fed chair is due to speak at a news conference after the
central bank's two-day policy meeting, which ends Wednesday.
Earlier this month, he said in a web symposium with
Princeton University that the U.S. economy is still far from the
Fed's inflation and employment goals, and it is too early to
discuss altering monthly bond purchases. The dollar index =USD ticked up 0.1% to 90.284 on
Wednesday in Europe, following a 0.2% decline the previous
session.
The gauge has been consolidating since bouncing off a nearly
three-year low of 89.206 at the start of the month.
The British pound GBP= climbed to its highest since April
2018 at $1.3753 before trading slightly lower at $1.3724. GBP/
The Aussie dollar AUD= slipped 0.2% to 77.30 U.S. cents,
paring Tuesday's 0.5% rally.

EURO/DOLLAR = ECB/FED ?

The euro dipped 0.1% to $1.2146 EUR=EBS .
Analysts said reports on Tuesday the European Central Bank
was studying whether differences with the Fed's policy are
boosting the euro - part of a wider review of financing
conditions - would not have a material effect on the currency.
It's "probably one of those headlines where it's a buy on
the dip moment in euro/dollar here," said Jordan Rochester, FX
strategist at Nomura in a note to clients. He remained long the
euro/dollar spot rate, Rochester said, with a target of $1.25 by
the end of March.
ECB President Christine Lagarde has repeatedly said the
central bank is carefully monitoring the single currency's
exchange rate.
"We suspect they might find that higher inflation is more
credible in the US and that euro/dollar spot is closer related
to the global manufacturing sector (which is doing well), not
European services and maybe, that expectations are elevated in
terms of Europe's comeback," said Lars Sparresø Merklin, senior
analyst at Danske Bank.
"Either way, this adds to a growing number of countries who
appear uncomfortable with USD weakness."

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates https://tmsnrt.rs/2RBWI5E
Federal Open Market Committee Projections https://tmsnrt.rs/3a2U7fw
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

FOREX-Dollar edges before Fed meeting, euro slips
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email