The Dollar is edging broadly higher as some interest is being piqued and helping the greenback to recover from earlier lows. Earlier, it appeared that the FX market had lost faith in the likelihood that the Federal Reserve Bank will be able to push through more interest rate hikes in the months ahead. As such, their faith in the almighty dollar is waning, with the Dollar under pressure against both the Pound Sterling and the common currency Euro. The Japanese Yen, which had earlier found support, has lost ground on a slight improvement to risk appetite.
As reported at 11:12 am (BST) in London, the GBP/USD was trading at $1.2724, edging slightly higher off the session low of $1.27058, while the day’s high was at $1.27604. The EUR/USD was trading at $1.1188, up 0.04%; the pair has ranged from a low of $1.11755 to a peak of $1.12083. The USD/JPY was trading at 111.614 Yen, up 0.03%; earlier, the pair hit a trough of 111.122 Yen while the session peak was at 111.717 Yen.
Spotlight on Tuesday Central Bankers Meeting
What is likely to happen to the Dollar, according to analysts, is that despite rhetoric from the voting members of the Federal Reserve Bank, traders are disbelieving it. It’s unlikely then that anything that Janet Yellen will do or say tomorrow when she speaks in Europe will make any difference in the collective minds of Dollar traders. Ahead of Yellen’s speech, Mario Draghi will take center stage at the central bankers meeting and could hint at a timetable for pulling back some of the ECB’s Quantitative Easing measures. Also in the lineup tomorrow is Mark Carney of the Bank of England, which puts the Pound Sterling in the mix with the Dollar and Euro for a day of volatility.