The dollar remained lower after a two-day decline versus the euro with the Federal Reserve expected to announce today an expansion to asset purchases that tend to weaken the U.S. currency.
The greenback slid yesterday versus most of its 16 major counterparts amid expectations the Fed will add Treasury purchases to an existing program that buys $40 billion in mortgage bonds each month. The euro was supported ahead of a meeting of European Union finance ministers today and a summit of leaders from the 27 nations in the bloc beginning tomorrow. Figures yesterday showed German investor confidence reached a seven-month high, while Greece met its bond buyback target.
“The bias is for the dollar to be sold because the Fed seems to have no intention to relax its easing stance,” said Kengo Suzuki, a currency strategist in Tokyo at Mizuho Securities Co., a unit of Japan’s third-largest bank by market value.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.