U.S. Dollar Set for Monthly Losses as Fed Meets

The dollar headed for monthly losses against most major peers before U.S. data forecast to show consumer confidence fell to a five-month low and retail sales stalled as the Federal Reserve starts a two-day meeting today.

The Bloomberg U.S. Dollar Index was set for a second month of declines amid bets the partial government shutdown has added to the case for the Fed to delay paring stimulus. The euro touched a two-month high versus the pound before a report due today that may show stronger consumer sentiment in France, Europe’s second-largest economy. The Aussie dollar fell after Reserve Bank of Australia Governor Glenn Stevens said the currency will probably be “materially lower.”

“The trend for dollar selling continues,” said Kazuo Shirai, a trader at Union Bank NA in Los Angeles. “Most people think tapering won’t begin until spring, as the fallout from the government shutdown has made a move this year highly unlikely.”

Bloomberg

Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.