USD Remains Strong, Restless Euro Awaits ECB Meeting - Kakiforex.com - Financial Market Media No. 1 in the World USD Remains Strong, Restless Euro Awaits ECB Meeting USD Remains Strong, Restless Euro Awaits ECB Meeting
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September 9, 2021

USD Remains Strong, Restless Euro Awaits ECB Meeting

 The US dollar continued to strengthen in the Asian session supported by statements by some policymakers on stimulus easing, while the euro traded lower ahead of the European Central Bank's (ECB) policy decision tonight.


Against major competitors, the dollar index that measures the strength of the greenback dollar traded steady at 92.72, amid the gloom of the U.S. stock market weighed down by uncertainty over the strength of the economic recovery.


Some Federal Reserve (Fed) policymakers are seen still signaling that the central bank is still on track to keep reducing bond purchases this year despite weak jobs data in August and the impact of the Covid-19 rise.


Most recently, Dallas Fed President Robert Kaplan said he still supports gradual cuts beginning in October, as long as the economic outlook has not changed fundamentally.



New York Fed President John Williams said progress in the labor market was necessary before starting stimulus cuts. However, he will focus more on the overall data, and not just refer to one month’s data only.


Williams expects the workforce to increase in the next few months. The rate and timing for the reduction of asset purchases will be decided in future central bank discussions.


Meanwhile, the ECB tonight is expected to withdraw stimulus, by reducing its emergency bond -buying program to € 60 billion from € 80 billion.


Nevertheless, the euro remained traded lower despite such hawkish expectations, as impressed by the strength of the US dollar.