Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Holds Steady as Investors Eye Central Bank Policy Paths

Forex Jun 28, 2022 06:36AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Scott Kanowsky 

Investing.com --The dollar pared back from earlier gains to trade near the flatline on Tuesday, with investors mulling the outlook for central bank policy actions in response to soaring inflation.

The US Dollar Index - which measures the greenback against a basket of six other currencies - was little changed at 103.95 by 05:50 EST (0950 GMT).

Weighing on sentiment in Europe were signs of weakness in recent economic data. The latest GfK German consumer climate index fell to -27.4 in July from a revised -26.2 the previous month as shoppers in the Eurozone’s largest economy struggled with hefty price rises. French consumer confidence for the same period also came in below expectations.

Investors are trying to gauge whether these signals - along with similar readings from other key economies - could moderate expectations for aggressive central bank policy tightening. Concerns that large interest rate increases may trigger a broader economic slowdown have led some investors to seek the relative safety of the dollar, helping give recent strength to the greenback.

This week, focus is also on an annual European Central Bank forum in Sintra, Portugal. Speaking at the event today, ECB President Christine Lagarde reiterated the central bank's intention to raise interest rates in July and September, adding that it will go "as far as necessary" to curb price rises. However, she stressed that this plan will remain flexible.

EUR/USD was trading slightly higher in the wake of Lagarde's statement, up 0.07% to 1.0589.

Elsewhere in Europe, the GBP/USD fell slightly by 0.07% to 1.2256.

In China, the USD/CNY pair was down by 0.05% at 6.6886. Earlier in the day, the Governor of the People's Bank of China Yi Gang said the central bank will keep its policy accommodative to support the economy, while officials in Beijing also announced the easing of some COVID restrictions for overseas travelers.

Dollar Holds Steady as Investors Eye Central Bank Policy Paths
 

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.
 
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
Continue with Google
or
Sign up with Email