The US dollar was mixed today as Forex market participants continued to speculate about whether the Federal Reserve is going to hike interest rates in December or not.
For the most part, speculators continued to bet on a hike in December. The problem for the dollar is that such expectations are already reflected in the exchange rate, meaning that news supporting the idea of the December rate increase should have limited impact on the currency. On the other hand, news that reduce changes for monetary tightening this year is likely to hurt the greenback substantially. The upcoming US elections are a possible source of such news as any sign that Republican presidential candidate Donald Trump may win will be detrimental to the dollar.
Currently, the chance for the December lift-off stands at about 74% as shown by the CME FedWatch. That is compared to 78% on Tuesday.
EUR/USD rose from 1.0888 to 1.0906 as of 19:04 GMT today, rising as high as 1.0946. GBP/USD ticked up from 1.2185 to 1.2223. At the same time, USD/JPY advanced from 104.21 to 104.51.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.
Be First to Comment