2 min to read
The prevailing pressure on the US dollar persists
influenced by the dovish shift observed in the preceding day's FOMC meeting.
“In the contemporary forex landscape, the persistent pressure on the US dollar endures, influenced by the dovish shift witnessed in the recent Federal Open Market Committee (FOMC) meeting”
As the market anticipates forthcoming monetary policy announcements from the Bank of England and the European Central Bank, the environment is conducive to potential position adjustments. The yield on US 10-year bonds continues its decline, briefly touching the 3.93% range in the early London hours.
The Dollar-Yen pair is currently trading in the mid-141 range, reflecting the downward pressure on the dollar following the dovish turn observed in the preceding FOMC meeting. After an initial decline from around 142.90 to nearly 140.97 in the Tokyo market, the pair has experienced a temporary stabilization. In the early London session, it managed to recover some ground around the 142 yen range. However, the persistent decline in US bond yields is once again exerting upward pressure.
Movements in the Euro and Pound exhibit a degree of nervousness in the market. Speculation regarding potential interest rate cuts by the Bank of England and the European Central Bank in the upcoming year, coupled with increasing expectations of a rate cut in the US, has added complexity to the Euro-Dollar and Pound-Dollar pairs. Euro-Dollar is currently trading in the upper 1.09 range, initially falling from the Tokyo morning lows near 1.0874 but rebounding to around 1.0915 with Dollar selling. In the London morning, there was a brief retracement to around 1.0880, followed by a renewed push towards 1.0930. The Euro-Yen pair experienced a dip from around 155.55 in the Tokyo market to 153.87, followed by a period of stabilization. In London, it hovers around 154.50, exhibiting consolidation.
Pound-Dollar is trading in the upper 1.26 range, witnessing fluctuations from the early Tokyo levels near 1.26 to the mid-range. In the London morning, a slight downward push occurred, reaching around 1.2612, but the trend reversed, and the pair climbed to around 1.2680. Pound-Yen reached a high near 180.30 in the Tokyo morning, briefly dropping to around 178.35, followed by a temporary halt to the decline. During the London hours, it fluctuates in the mid-178 range. Euro-Pound, after being bought around 0.8634, experienced a decline to around 0.8606, followed by a period of stabilization. The market eagerly awaits the outcomes of the Bank of England and ECB meetings for further guidance.
Visit XM Official Website.
