Downward Pressure on the US Dollar Ahead of Fed Meeting and G20 Summit - Forex News by FX Leaders

Downward Pressure on the US Dollar Ahead of Fed Meeting and G20 Summit

Posted Friday, June 14, 2019 by
Arslan Butt • 1 min read

The US dollar index continued to trade weaker ahead of next week’s Fed meeting and the upcoming G20 summit at the end of the month. As inflation and other economic data weakens in the US, the markets are expecting the Fed to hint at the possibility of a rate cut during next week’s meeting.

The US dollar fell from two-year highs above 98 in May, and the dollar index DXY is now trading at 97.07 at the time of writing. Interest rate futures traders have increased the likelihood of a rate cut happening in July to 89%.

Meanwhile, the ongoing US-China trade war also continues to weigh on the dollar. Investors wait and watch to see how the meeting between Trump and his Chinese counterpart Xi Jinping progresses at the G20 summit. There are also increasing concerns that Trump could soon announce tariffs on Japan and Europe as well.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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