InstaForex

November 9, 2021

USD Gloomy, Fed Disappoints Market

 The greenback dollar traded slightly lower at the start of the Asian session as investors awaited the release of US inflation data this week.


Several Federal Reserve (Fed) policymakers gave speeches at different events in the previous New York session, however, little guidance on monetary policy has been discussed.


Fed Vice Chairman Richard Clarida said that the benchmark for raising interest rates could be reached by the end of 2022.


However, Clarida also added that the central bank is still far from lifting the stimulus fully by saying she expects jobs to return to pre-pandemic levels by the end of 2022.



Meanwhile Chairman Jerome Powell went on to suggest that they are in no hurry to raise interest rates until at least the reduction in bond purchases is over.


This has caused USD trading to be a bit gloomy, with the dollar index trading at 94.10 against a basket of major currencies in the Asian session.


However, the giant currency is not far from the one -year high it reached last Friday.


Investors are now awaiting the release of US inflation data, with the producer price index (PPI) to be published tonight and the consumer price index (CPI) on Wednesday.


Most other major currencies did not show much change by continuing to trade around the same price against the greenback dollar.