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.
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July 29, 2020
EUR/USD 1.1762 GBP/USD 1.2993 USD/CAD 1.3350 AUD/USD 0.7189 USD/JPY 105.02 USD/CNH 7.0028 USD/ILS 3.4104 USD/MXN 21.90 USD/CHF 0.9168 USD/INR 74.80
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.GBPThe 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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