Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar is trading near a three month high in the benchmark EUR/USD Forex market. The dollar is being supported by firm core inflation data, despite a soft print, in the United States. The euro is under pressure as inflation in the Eurozone came in softer than the markets expected.
The EUR/USD was trading below the key support now technical resistance level at $1.13. This market had been trading at 1.1283 earlier in the Asian session today. It hit an intraday low at $1.1245.
The benchmark AUD/USD Forex market was trading higher. The Aussie is a barometer for global risk. This market was up 0.3 percent to trade at $0.7110. Yesterday, this market was up 0.5 percent. Traders feel some optimism about the trade talks between the United States and China.
The dollar index, which measures the greenback in a basket against six other currencies including the heavily weighted euro, was up this morning. It was trading at 97.20. The index, yesterday, was up 0.5 percent. The index has now rallied 1.7 percent for the month, so far.
Currency Trader Support the Dollar despite a Dovish Federal Reserve
The U.S. currency has been under pressure in 2019 as the Federal Reserve has taken a more cautious monetary policy stance. There has been some data released that supports that the U.S. central bank will need to stay vigilant with inflation.
Headline U.S. inflation, core CPI, came in at its weakest pace of growth in a year and a half for the month of January. Traders are looking at the core price gauge. This rose for the third month in a row. They supported the dollar thanks to that data.
