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InstaForex

May 19, 2021

This Is The Main Issue That Will Happen In The FX Market Today

 The US dollar continued to trade lower against its rivals, especially the European currency as expectations that US interest rates would remain low continued to weigh on greenback trading.


The report of the last minutes of the Federal Reserve (Fed) meeting scheduled for Thursday is expected to show that policymakers think interest rate hikes are still a long way off.


In the Asian session, the dollar index, which measures the strength of the greenback against six major currencies, traded weaker at 89.80.



Investors will also scrutinize the UK and European Zone inflation data to be published today to assess until when the major economies will implement their very loose monetary policies.


Following more easing of coronavirus blockade measures implemented in the UK following the launch of an encouraging vaccination, the pound surged to its highest level since February.


Meanwhile, the euro remained stable around a nearly 3 -month high against the US dollar ahead of the release of European inflation data which is expected to be unchanged from previous initial estimates.


On the other hand, the Aussie and New Zealand dollars changed little after rising higher in the previous session, amid the absence of catalysts from economic data to drive currency movements.