The greenback continues to back down just a bit entering this week’s market. The dollar continues to tumble against a basket of currencies as investors kept a decent distance ahead of the outcome of this week’s Federal Reserve Meeting.
Investors are eagerly waiting for the outcome of the Fed’s two-day policy meeting that will be held tomorrow, Wednesday. Considering that rate hike is almost fully priced in by markets; investors are resting in the safe zone causing the greenback’s strength to diminish. The current US dollar index was down a total of 0.22% to 101.16, after crashing in a two-week low of 100.86 overnight.
As for the recent data from the US nonfarm payrolls reports for February has diminishing chances of altering the rate increase this week. The department of Labor unveiled that US hiring is in constant and stagnant pace, with wages rising just a tad bit every now and then, but still not fast enough to overtake economists expectation.
The greenback has again inched higher against its European predecessor, the euro. According to a hefty amount of sources, the European Central Bank policy makers are highly considering the raising of their rate for their record low before the end of the bank’s asset-purchase stimulus program.
While having a good run against the euro, the greenback sees a bleaker future against both sterling and yen. The dollar is currently down 0.9% at 114.71 after Friday’s seven-weeks high of 115.49. Against sterling, the dollar is currently down 0/45% to 1.2224 after the UK parliamentary debate on changes to Brexit legislation. Investors are currently expecting Britain’s lower house of parliament to share with the public the changes made by the upper house last week.
Sterling to Continue Bullish Streak
The sterling is expected to grow in support despite looming speculation of British Minister Theresa May could trigger Article 50 of the Lisbon Treaty on Tuesday. The treaty signifies a formal beginning of the grueling two-year process of exiting the European Union.
Even with the recent vote for the Scotland’s First Minister Nicola Sturgeon said that she will ask the Scottish parliament to vote next week on whether to hold a second independence vote. EUR/GBP is currently trading at the price of 0.8724, down a total of 0.65%.
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