By: DailyForex.com
The US Dollar Index edged higher in Wednesday trading but remained near to the recently struck 6-week trough. Speculation that the Federal Reserve Bank is unlikely to raise rates anytime soon is keeping the pressure on the greenback. Until last week, the Dollar had recorded one of the best 1-week gains in 18 months, however disappointing growth data and the Fed’s own rhetoric after its policy decision put a halt to the rally. One currency strategist in London says that any gains on the Dollar as a result of improvement in risk sentiment are merely temporary and likely to be capped.
As reported at 11:04 am (BST) in London, the US Dollar Index was trading at 95.297 .DXY, up 0.25%, not far from yesterday’s trough of 95.003 .DXY. The EUR/USD was trading at $1.1192, down 0.26%; the pair has ranged from $1.1189 to $1.1231 in daily trading today. The GBP/USD was floating near its opening price at $1.3351, up just 0.02%; today’s trading band ranged from a low of $1.3285 to a peak of $1.3359.
Key Level Break Forecast for USD/JPY
The softness among other major central banks is also having an impact on the Dollar. Against the Japanese Yen, the expectation is that the USD/JPY will be breaking and holding below the 100 Yen level in due time. The pair had briefly hit that price after the June 23rd Brexit vote, which strategists see as “irregular,” but has held above it since. The USD/JPY pair was trading at 101.246 Yen, up 0.35%.