Dollar Retreats on Summit Disappointment
The US Dollar gave back earlier gains after FX traders assessed the summit between the US and North Korea and determined that no concrete measures would be forthcoming. FX traders are also sitting on the sidelines as they wait for any changes to monetary policy from the European Central Bank and the Federal Reserve Bank. One strategist in London said that the lack of anything substantive from the summit was doing little to diminish concerns over the G7 developments.
As reported at 10:59 am (BST) in London, the EUR/USD was trading at $1.18, a gain of 0.11%; the pair has ranged from a trough of $1.17411 to a peak of $1.18100 in today's trading session. The GBP/USD was trading at $1.3391, up 0.10%; the pair had earlier hit a peak of $1.3419 while the low is at $1.3342.
Fed, ECB Eyed for Policy Decisions
Markets will be hoping for more clarity out of the US and EU central banks. Economists recently polled are calling for interest rates to remain unchanged in the short term, with hopes that the policy statement would hint at the timing of the next 2018 rate increase. In the Eurozone, the ECB is expected to begin the process of reining in its quantitative easing program and Mario Draghi, the head of the ECB, is expected to make that announcement at his press conference after the official decision.