USD trades mixed as markets anticipate decision from Fed

USD trades mixed as markets anticipate decision from Fed

All eyes are on the Fed while currency markets trade rangebound. The Fed’s decision and meeting minutes will provide signals of when the central bank may begin to tighten monetary policy. Data out of the UK supported sterling signaling that inflation was higher than the Bank of England’s target rate for the first time in two years.

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  • FX Rates
    June 16, 2021

    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 US dollar trades mixed against its peers as investors await the decision from the Fed later today. Markets anticipate that the central bank may offer clues as to when it will start to slow bond purchases. The Bloomberg dollar spot index is trading slightly lower after increasing to highest level since June 4 yesterday.

    GBP

    Data out of the UK showed that inflation was higher than the BoE’s target for the first time in two years. Sterling strengthened on this news hitting a high of 1.4133.

    EUR

    EUR/USD maintains a tight trading range of 1.2114-1.2135 ahead of the Fed meeting later today.

    CAD

    USD/CAD remains largely unchanged as traders focus on comments out of the Fed later today which could signal how the central bank will manage asset purchases. Later today, the Bank of Canada’s Governor Tiff Macklem will present to a Senate committee. WTI crude is trading slightly higher.

    ASIA/PACIFIC

    AUD/USD dropped to a one-week low yesterday after comments from the Reserve Bank of Australia promised to keep an accommodative policy. The currency pair is trading slightly higher this morning.

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Cate Camerota
WRITTEN BY
Cate Camerota

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