Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Edges Higher; BoJ Upbeat; Fed Meeting in Focus

ForexApr 27, 2021 03:03AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse

Investing.com - The dollar edged higher in early European trading Tuesday, but remained near multi-week lows ahead of the start of the Federal Reserve's two-day policy decision meeting.

At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was 0.2% higher at 90.918, after dipping to the lowest since March 3 overnight at 90.679.

EUR/USD traded down 0.1% at 1.2071, but remained close to the two-month high of 1.2117 reached Monday, GBP/USD was largely unchanged at 1.3891, while the risk-sensitive AUD/USD fell 0.1% to 0.7793, after a 0.7% rally overnight that took it just shy of a five-week peak.

USD/JPY rose 0.1% to 108.20, continuing its rise from Friday’s seven-week low of 107.48, after the Bank of Japan held policy steady and took a more positive view on growth while cutting inflation forecasts.

Attention now turns to the Federal Reserve’s two-day policy-setting meeting, concluding on Wednesday, even if no changes to monetary policy is widely expected.

The market will still pay close attention to comments from Fed Chairman Jerome Powell, who is likely to face questions over whether improving conditions warrant a withdrawal of monetary easing.

There seems to be a real conviction that the global economy is on a recovery path, even with the Covid situation in India causing anxiety, and this is weighing on the dollar. 

“Supporting this narrative should be this week's combination of US events in the form of a) strong 1Q21 US GDP on Thursday and b) Wednesday's FOMC showing a Fed continuing to let the economy run hot and only reining in accommodation once the recovery has delivered,” said analysts at ING, in a note.

June looks like being a much more significant FOMC meeting, as there will have been a number of months of likely strong economic data for the central bank to digest, and “the seven weeks between the April and June FOMC meetings is a long time to be sitting on the sidelines in defensive dollar positions when more attractive alternatives are available elsewhere,” ING added.

Also of interest Tuesday will be the auction of $62-billion of seven-year U.S. Treasurys later in the session. A seven-year debt auction in February saw very weak demand, which sparked a dramatic rise in yields, helping the dollar push higher.

However, the dollar has fallen nearly 3% since late March as U.S. Treasury yields traded in narrow ranges after retreating from a 14-month high of 1.776%, in the benchmark 10-year yield, slashing the currency's appeal.

The 10-year yield was around 1.58% on Tuesday, in quiet trade since sliding to a one-month low of 1.528% in the middle of this month, while the seven-year yield edged up to 1.27%.

 

Dollar Edges Higher; BoJ Upbeat; Fed Meeting in Focus
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Luqman Firdaus
Luqman Firdaus Apr 27, 2021 3:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
ok $ 65.000
Slim Beatz Katanshi
Slim Beatz Katanshi Apr 27, 2021 12:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the outlook is a strong Dollar but with cautious
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email