Federal Reserve officials, with more hawkish commentary than usual, helped to broadly support the US Dollar. The Dollar Index, a measure used by investors to gauge the strength of the dollar against major rivals, edged up almost 0.1%. The support for the Dollar comes days after Janet Yellen, the chairman of the Federal Reserve Bank, issued a cautionary tale which left investors nearly certain that an imminent rate rise was a possibility. In the days which followed the Fed policy meetings, however, several key FOMC officials have spoken out in favor of a near-term rate increase, with one pushing for an April hike.
As reported at 9:42 am (GMT) in London, the EUR/USD was trading lower at $1.1192, with the pair ranging from $1.1180 to a peak of $1.1224 in today’s session. The USD/JPY was 112.7260 Yen, up 0.34% in volatile trading. The AUD/USD was lower at $0.7595, down 0.26%.
Brexit Fears Push Pound Lower
The GBP/USD pair was also lower at $1.4170, down 0.34%. Analysts say that the Pound Sterling is likely to come under more pressure given yesterday’s attack in Brussels as many believe fear would tend to push voters toward a Brexit in the June referendum. Options, which are an indication of investor sentiment, soared with 3-month options for Sterling rising to a level not seen in nearly six years; the 3-month options would cover the voting period time frame.