US Dollar Rebounds Following Fed Minutes
London: 22 November 2023 (TraderMade): The US Dollar rebounds post-Fed minutes, while the British Pound Sterling awaits Autumn statement on Wednesday. In the early hours of Wednesday's European trade, the US dollar showed a slight uptick, though it remained closer to recent lows after the Federal Reserve's meeting minutes release.
Despite the Fed minutes signaling a cautious approach, stating a careful proceeding, and maintaining the current rate setting, it failed to substantially shift market sentiment. The central bank emphasized a potential interest rate hike only if inflation control efforts faltered, hinting at limited tightening in the near term.
All eyes are on the UK Chancellor Jeremy Hunt's upcoming Autumn statement, with reports suggesting potential tax cuts to support the country's weak growth outlook.
USD pairs latest updates (@09:43 AM GMT)
US Dollar Index (USDX)
The Dollar Index, tracking the greenback against six major currencies, rose by 0.132% to 103.634, slightly above the 2-1/2-month low recorded yesterday at 103.4975. November has seen a 3% decline in the index, indicating its potentially worst monthly performance in a year.
Euro/US Dollar (EURUSD)
In Europe, the EURUSD pair dropped 0.053% to 1.09049, retracing recent gains.
Pound Sterling/US Dollar (GBPUSD)
The GBPUSD pair also declined by 0.061% to 1.25313, not far from the two-month high of 1.2558 reached overnight.
US Dollar/Swedish Krona (USDSEK)
Meanwhile, USDSEK rose by 0.013% to 10.46905 ahead of the Swedish central bank policy-setting meeting.
US Dollar/Chinese Yuan (USDCNY)
In Asian markets, USDCNY increased by 0.13% to 7.10675 as the yuan retreated from recent gains due to stronger-than-expected midpoint fixes and reports of potential stimulus measures from the People's Bank of China.
US Dollar/Japanese Yen (USDJPY)
USDJPY traded 0.447% higher at 149.058, with the yen pulling back from its three-month high against the dollar amidst uncertainty over the Bank of Japan's dovish stance. The bank has signaled minimal changes to its ultra-loose monetary policy.
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