Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - Dollar Hits Highest Since December before Fed Decision

Published 05/02/2018, 10:31 AM
Updated 05/02/2018, 10:31 AM
© Reuters.  Dollar hits highest since December before Fed decision

© Reuters. Dollar hits highest since December before Fed decision

Investing.com - The dollar rose to its highest level since December against a currency basket on Wednesday ahead of the Federal Reserve’s decision on monetary policy later in the day.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.14% to 92.43 by 10:31 AM ET (14:31 GMT), the strongest level since December 28.

Demand for the dollar continued to be underpinned after data showing that U.S. private employers added 204,000 jobs in April, slightly higher than economists' expectations. The upbeat jobs data cemented expectations for a June rate hike by the Fed.

While the Fed is expected to keep interest rates on hold after its meeting later Wednesday policymakers are widely expected to line up their next rate hike in June against the backdrop of a strengthening U.S. economy.

The dollar edged up to fresh three month highs against the yen, with USD/JPY last at 109.91

The euro fell to fresh four month lows, with EUR/USD down 0.18% o 1.1972.

The single currency came under pressure after data showed that growth in the euro zone economy slowed in the first quarter, underlining that case for the European Central Bank’s caution in removing stimulus.

Another report showed that activity by euro zone manufacturers cooled in April, but still remained solid.

The pound was hovering above four-month lows, with GBP/USD last at 1.3611 after a report showing that activity in the UK construction sector rose at the fastest pace in five months in April.

The report did little to alter investor expectations that the Bank of England will leave interest rates unchanged at its upcoming meeting next week after overall economic growth slowed to near stagnation in the first quarter.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.