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Wed 2 Dec 2020 00:45GMT

Forex News Now: US Dollar under Pressure ahead of FOMC Decision

Published: 28 Jan at 2 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany, Greece, Russia,

Pound Sterling
The Pound advanced on the Euro on Wednesday as investors bet that Sterling’s GDP related slide was excessive. The British currency could gain on the US Dollar in the hours ahead if the Federal Open Market Committee is more cautious on the subject of interest rates.

US Dollar
Yesterday’s disastrous Durable Goods Orders report pushed the US Dollar lower against several of its most traded peers. The currency continued trading slightly lower as investors speculated on the likelihood of the FOMC adapting its interest rate rhetoric.

Mixed economic reports for Germany, fresh Russian sanction concerns and varying reports relating to the renegotiation of the Greek bailout conspired to weaken the Euro on Wednesday. The currency was trading in a softer position against both the Pound and US Dollar. Tomorrow’s German employment and inflation data is likely to cause further common currency movement.

Australian Dollar
As Australia’s core measure of inflation improved, reducing the odds of the Reserve Bank of Australia cutting interest rates in the near future, the Australian Dollar surged. The AUD/GBP pairing advanced by over 0.5% while the AUD/USD exchange rate climbed almost 1% before paring its gain to trade in the region of 0.7965.

New Zealand Dollar
During the Australasian session the New Zealand Dollar is likely to experience movement as a result of the Reserve Bank of New Zealand’s interest rate decision and New Zealand’s trade balance data. A dovish RBNZ would undermine ‘Kiwi’ demand.

Canadian Dollar
The ongoing declination in oil prices continues to put the Canadian Dollar under strain. Shifts in the commodities market have been largely responsible for ‘Loonie’ movement so far this week as Canadian data is lacking until Friday, when the nation publishes growth figures for November.
As of Wednesday, 28th January 2015, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.3417, GBP USD exchange rate was 1.5142, GBP AUD exchange rate was 1.9187, GBP NZD exchange rate was 2.0674, GBP CAD exchange rate was 1.8963, and GBP RUB exchange rate was 102.6058.
Dominic Lee About Author: (443 Posts)With over ten years experience as an economist – including four years spent as a chief economist with a major currency broker – Dominic has acquired a wealth of knowledge which he uses to forecast market movements. Dominic now works as an independent business advisor and writes for several financial publications.

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