US Dollar is nursing its wounds after hitting lows last seen in early February. So far the US Dollar Index managed to distance itself from the lows of 99.55 seen yesterday but remains vulnerable as we still see some USD weakness persist.
The dollar slipped to a three-week through against the Japanese yen on Tuesday. Concerns about how quickly the Trump administration can implement pro-growth policies weighed on the greenback, pushed stocks lower and boosted safe-haven demand for the Japanese currency.
We had mixed results at yesterday’s US close. In terms of data the economic calendar lacked any high impact data however there was a number of Fed speakers scheduled to speak throughout yesterday’s session.
The dollar dropped to a five-week trough on Friday, and stayed under pressure for a third consecutive session following the Federal Reserve decision of keeping a gradual pace to its monetary policy tightening. The FOMC decision dampened hopes for further gains for the greenback.
USD weakness persisted and the US Dollar index (DXY) measuring the strength of the USD against a basket of major currencies slipped by around 1.5% over the past two days. The DXY is currently trading at 100.25 compared to the 102 levels a week ago.
Today its all about the Fed and what traders have interpreted to be the next rate hike. The 2-day meeting that started yesterday will reach its conculsion later today and there will be communication of the latest monetary policy outlook and decisions.