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Dollar Gains ground during Asian Hours

us dollar, fomc, fed, treasury, treasuriesThis morning during Asian trade hours the U.S. dollar gained ground as investors are waiting on today’s release of the Federal Open Markets Committee (FOMC) minutes release. This is due during the North American trade hours and should indicate some direction with further rate hikes from the Federal Reserve Bank in 2018.

The U.S.  Dollar index, which measures the dollar against of six Forex partners, rose this morning. It was up 0.1 percent to 93.670. The dollar index settled down since setting a five month high on Monday.

The greenback’s gains on Monday finished a recent rally of more than five percent from April. This USD rally was fueled by solid U.S. economic data. Trades also expect that the Federal Reserve will raise interest rates two more times this year.

The EUR/USD Forex market was lower today. The euro lost 0.1 percent to $1.1762. The single currency is still above Monday’s six month low of $1.1717.

The USD/JPY Forex market was down 0.4 percent to 110.48 yen. This was off a four month high of 111.395 yen set back on Monday.

There has been a selloff in the Turkish liras of late. It continued after rating agencies sounded an alarm on overnight. They are concerned about plans by President Erdogan to “tighten his grip on monetary policy.”

Dollar Traders to focus on the upcoming FOMC Minutes Today

Looking at today’s economic calendar, traders will be focusing on today’s release of the FOMC minutes from last month’s meeting. Thy kept interest rates steady and made no changes to monetary policy.

At that May meeting, policy makers at the Fed also said inflation had “moved close” to its target of two percent. They also said that “on a 12-month basis is expected to run near the Committee’s symmetric 2 percent objective over the medium term.”

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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