By: Barbara Zigah
Ahead of the U.S. Federal Reserve meeting to be held next Tuesday, the U.S. Dollar is holding steady at $1.3933 versus the Euro in Asian trading today, remaining close to yesterday’s low of $1.3986 on the EBS trading platform. Recently released data from the U.S. showed a decline in industrial output and producer prices that increased at a slower rate than expected. Yesterday, data on consumer prices was released which showed only a slight rise. All of these reports combined to calm investor expectations of a rate increase from the Fed, and reduce worries of the risk of inflationary pressure. According to analysts, the results of the Federal Reserve board meeting and the markets reaction to long term yields on U.S. Treasuries are key to the direction of the U.S. Dollar, at least in the near term.
U.S. rating agency Standard & Poor’s reported that the AAA rating currently assessed on the U.S. debt is not expected to come under any near term scrutiny and will likely remain unchanged. Nonetheless, as reported at 3:11 p.m. (JST), the U.S. Dollar slipped against most major currencies. Versus the Japanese Yen, the U.S. Dollar traded flat at 95.76 Yen, up slightly from yesterday’s 2-week low of 95.51. In early trading, the Yen experienced broad losses on speculator caution.
U.S. Dollar steadies in Asian Trading
Barbara Zigah
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About Barbara Zigah
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.