The US Dollar moved toward a 3-month peak versus the Japanese Yen as expectations grow that the Federal Reserve Bank will now certainly raise rates before the year’s end. According to the FedWatch tool, markets are pricing in a 74% likelihood of a December rate increase, rising from already strong expectations, after a number of Federal Reserve policymakers expressed hawkish comments. The US Dollar Index, which FX traders use to gauge the relative strength of the greenback as compared to major trade-weighted peers, hit a 9-month peak earlier.
As reported at 10:48 am (BST) in London, the USD/JPY pair was trading at 104.658 Yen, a gain of 0.18%; the pair has ranged from a daily low of 104.2700 Yen to a peak of 104.75 Yen. The GBP/USD was down at $1.221, a loss of 0.12%; the pair’s daily range was established at a low of $1.2198 to a high of $1.2270. The US Dollar Index was nearly flat at 98.623 .DXY.
Norway’s Central Bank Stands Firm
Beginning the cycle of central bank monetary policy decisions, earlier today the Norges Bank of Norway announced earlier that it was maintaining its key rate at 0.5%, largely as expected. The bank also hinted that the rate was likely to remain unchanged in the short term. As a result, the Norwegian Krone edged higher in European trading before easing back; currently, the EUR/SEK pair is trading at 9.771 Krones, a gain of 0.52% for the Euro.