Investors sell dollar ahead of Fed meeting

Currencies are broadly stronger versus the US dollar ahead of today’s FOMC meeting where the Fed is expected to keep its dovish stance. US equities ended lower on Tuesday on concerns over stimulus negotiations making this round much slower moving than in March.

“Having knowledge but lacking the power to express it clearly is no better than never having any ideas at all.”    

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  • FX Rates
    July 29, 2020

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.


  • USD

    The dollar fell to the lowest levels since mid-2018 as investors expect a dovish tone from the Fed today. The Fed’s policy statement will be released at 2 pm today followed by Chairman Jerome Powell’s virtual comments 30 minutes later. Powell is expected to sound dovish and may hint at tolerance of higher inflation rates.

    GBP
    The pound ticked slightly higher versus the dollar on overall dollar weakness. Brexit negotiations are not making much headway with the only commitment for London and Brussels now is to continue talks.  
    EUR

    The euro touched intra-day highs of 1.1770 and then trimmed gains as the recovery rally put the currency on course for the best month since March 2016. 

    CAD

    The loonie gained on overall dollar weakness ahead of the FOMC meeting today.

    ASIA/PACIFIC

    Most Asian currencies rose versus the dollar ahead of the FOMC meeting. PBOC injected CNY 30B into the economy and the yuan reference rate is below psychologically important 7.00

    As consumer prices fell less than expected and gold iron oil prices strengthen, the Aussie dollar rose to its highest level versus the US in over a year.

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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