Ahead, FX traders are looking to two key speeches from members of the Federal Reserve Bank which might provide direction for US interest rates and thus the US Dollar in the coming months. Both Dennis Lockhart and John Williams of the Atlanta and San Francisco branches of the Federal Reserve Bank, respectively, will speak publically later today and provide their take on the future of interest rates in the US. Especially important is whether or not the Fed will be able to keep its promise of several rate cuts this year, and if so, the timing of the next.
As reported at 10:45 am (GMT) in London, the EUR/USD was trading flat at $1.1018; the range today has been from a low of $1.1005 to $1.1039. The USD/JPY was up at 112.2370 Yen, a gain of 0.15%. The US Dollar Index was trading just off its opening price at 97.493 .DXY. The Index is used by investors to determine the relative value of the greenback against a basket of weighted peers.
Euro Pressures Expected as Sterling Steadies
Analysts expect to see some pressure on the Euro as FX traders wait to see the European Central Bank’s next move. It is anticipated that Mario Draghi will soon push through more easing measures given that inflation in the Eurozone remains extremely low. FX markets steadied in Asia and Europe; the Pound Sterling was able to steady and recover from earlier lows while the Dollar remained relatively flat. Meanwhile, the Pound Sterling seemed to steady after hitting a 7-year trough versus the US Dollar and losing more than 3% of its value this week. The GBP/USD was trading at $1.3924, down 0.06% but not far from the session low of $1.390.