US Dollar Cautious as Fed Officials’ Speeches in Focus This Week
The US dollar is trading steady, holding on to gains from the previous week even as traders shift their focus towards speeches by Fed
Early on Monday, the US dollar is trading cautious, holding on to gains from the previous week even as traders shift their focus towards speeches by Fed officials this week. At the time of writing, the US dollar index DXY is trading around 92.76.
Meanwhile, the Yuan has strengthened against the dollar in anticipation of inclusion of Chinese government bonds to the FTSE Russell World Government Bond Index, a decision on which is due later this week. The Yuan has appreciated over 1% so far this month amid an increase in the purchase of Chinese bonds by foreigners, and the inclusion in the index can lend more support to the currency.
The US dollar could see some moves over the week during Fed chairman Jerome Powell’s congressional testimony. In addition, other FOMC members, including Raphael Bostic, James Bullard and Charles Evans are scheduled to conduct public speeches which could shed more light on the central bank’s plans for inflation and monetary easing.
The Euro and the GBP have also strengthened against the US dollar despite worries about a resurgence in coronavirus cases across Europe and Britain lately raising the possibility of more lockdowns. The safe haven currency JPY also remains supported over the prevailing risk-off sentiment in global markets as traders remain concerned about the economic impact of the pandemic and the uncertainty around the upcoming US presidential elections.
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