U.S. Dollar Advances On Fading Rate Cut Hopes
02 Mai 2019 - 5:09AM
RTTF2
The U.S. dollar strengthened against its major counterparts in
the Asian session on Thursday, after the Federal Reserve kept its
interest rate on hold, but dashed investors' hopes for a near-term
interest rate cut.
In his post-monetary policy meeting press conference, Powell
said a fall in inflation this year could be due to transitory
factors.
Powell said the Fed would take persistently low inflation into
account when setting policy but currently expects inflation to
return to the 2 percent objective.
The Fed reiterated it will be patient as it determines future
adjustments to interest rates due to global economic and financial
developments and muted inflation.
The Fed maintained the target range for the federal funds rate
at 2.25 to 2.50 percent for the third consecutive meeting.
Investors await U.S. reports on weekly jobless claims, labor
productivity and costs, and factory orders today, as well as
monthly jobs report on Friday.
The greenback advanced to a 2-day high of 111.67 against the
yen, from a low of 111.35 hit at 6:00 pm ET. The greenback is seen
finding resistance around the 113.00 level.
The greenback was trading higher at 1.1199 against the euro, up
from near a 2-week low of 1.1265 seen on Wednesday. Next key
resistance for the greenback is seen around the 1.10 level.
The greenback edged up to 1.3038 against the pound, following a
low of 1.3060 touched at 9:15 pm ET. On the upside, 1.28 is
possibly seen as the next resistance level for the greenback.
The U.S. currency ticked up to 1.0184 against the franc, after
falling to 1.0170 at 6:30 pm ET. The next key resistance for the
greenback is likely seen around the 1.03 region.
Looking ahead, PMI reports from major European economies are due
in the European session.
At 7:00 am ET, the Bank of England announces its interest rate
decision. Economists widely forecast the benchmark to remain at
0.75 percent and asset purchase program at GBP 435 billion.
In the New York session, U.S. weekly jobless claims for the week
ended April 27 and factory orders for March are scheduled for
release.
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