The US Dollar continues to remain steady as investors ponder the likely future of the greenback. In record numbers, FX traders have positioned themselves against the greenback, with expectations that the anticipated hike in interest rates is now less likely to occur. Analysts cite the overall weakness in the US economy and the possible change up of the Federal Reserve’s key officials in the near future. Thursday’s release of CPI data is likely to solidify investors’ expectations says one FX strategist in Frankfurt.
As reported at 11:16 am (BST) in London, the EUR/USD is trading at $1.196, a gain of 0.04%; the pair had earlier hit a low of $1.19440 while the peak for the session stands at $1.19782. The USD/JPY is up at 109.699 Yen, a gain of 0.30%; the pair has ranged from 109.210 Yen to 109.766 Yen in today’s session.
Bearish Outlook for USD Takes Hold
Short bets against the greenback remain near 2013 highs. Market players are now only expecting a single rate hike by December 2018, against earlier expectations that a rate increase would occur by December 2017. One recent survey indicates that FX traders are no longer optimistic over the greenback’s outlook, with only 7% having bullish expectations.