USD remains under pressure

With inflation stuck below the Federal Reserve’s two percent target, dimming chances of any economic reforms has traders questioning whether it would lift interest rates for a third time this year. Just months ago there had been bets on four hikes.

“The market has been waiting for the Trump failure cascade to begin and yesterday’s health care headlines once again bring into question the administration’s ability to enact on their key legislative promises leaving investors in limbo and the dollar sagging,” Stephen Innes, a senior trader at OANDA, said in a commentary.

The greenback was marginally up against its major peers but remained stuck at multi-month lows, with the euro enjoying support from expectations the European Central Bank will begin to wind in its stimulus in the near future.

The bank is to hold its next policy meeting Thursday and boss Mario Draghi’s statement will be pored over for clues about its timetable as the eurozone economy continues to improve.

AFP

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.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and specialises in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is based in Singapore as the Head of Trading Asia Pacific with OANDA.Stephen's market views focus on the movement of G-10 and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

Latest posts by Stephen Innes (see all)