Forex Marketz Daily Forex News – Fully Markets Update
The dollar lost ground Monday morning during Asian trade hours after Fed remarks on global growth pressured Treasury Yields. Federal Reserve officials expressed caution over the global growth outlook. This caused Forex traders to reassess future U.S. rate increases.
The dollar index, which measures the dollar against six Forex majors, was a tad lower. The index was last trading at 96.45. The index, on Friday, shed 0.5 percent. The USD index was at `16 month high of 97.69 on November 12.
The benchmark USD/JPY Forex market was trading at 112.70 yen. This was up slightly for the day. The USD lost 0.9 percent against the yen last week. Traders are looking at the safe haven Japanese yen as they worry about trade relation between the U.S. and China as well as Brexit in Europe.
Looking at the benchmark USD/EUR, the euro was steady during Asian trade hours at $1.1411.
Forex Traders Pressure the Dollar after Fed Comments on Global Economic Growth
The U.S. currency has seen a strong run 2018 as the Federal Reserve has been strengthening monetary policy thanks to a resurgent and growing economy. There has also been rising wage pressures. A fourth rate hike for this year is expected in December. The Fed has indicated two more rate hikes by June 2019.
There were fed comments last week by Richard Clarida. He is the newly appointed vice chair. He commented about market expectations regarding the pace of tightening. He cautioned about a slowdown in global growth. Clarida said that “that’s something that is going to be relevant,” especially with the U.S. economy.
In another interview, with Fox News, Federal Reserve Bank of Dallas President Robert Kaplan, said that he is seeing a growth slowdown in Europe as well as China.
