Dollar, Stock Indexes Steady Before Fed

The dollar traded in a tight range on Wednesday, managing to eke out modest gains against many of its primary trading partners, as traders eagerly looked towards the Federal Reserve’s announcement which is expected later today. Asian stock indexes were also modestly higher on Wednesday, rebounding from a mixed trading day on Tuesday during which traders showed their concern over the escalating trade war between China and the United States.

The dollar index was up 0.03 percent to 94.16 .DXY as of 1:30 p.m. HK/SIN, buoyed by the greenback’s gains against the British pound and the euro. The dollar declined slightly against the yen, easing 0.04 percent to trade at 112.92. The Australian dollar saw the biggest gains in the session, rising 0.21 against the greenback. The euro eased against the dollar, shedding 0.11 percent to trade at $1.1758 while the pound eased 0.06 percent to trade at $1.3172.

Stock Market Movements

Asian stock indexes were mostly higher on Wednesday afternoon despite U.S. President Trump’s most recent comments to the United Nations in which he said that the U.S. would “no longer tolerate” abuse on trade. Trump’s comments came shortly after U.S. trade Representative Robert Lighthizer said that the U.S. was prepared to proceed with a Mexican trade deal even if Canada was excluded.

Hong Kong’s Hang Seng Index soared 1.85 percent in the early afternoon on Wednesday. The Shanghai Composite was close behind, trading up 1.61 percent. The Shenzhen Composite was up 1.19 percent, while South Korea’s Kospi was up 0.68 percent. Japan’s Nikkei 225 gained 0.30 percent, while Australia’s ASX 200 traded flat.

Sara Patterson has a Master’s Degree in political science and enjoys analyzing both current events and the international markets to get a fuller perspective of the currency market. Before turning to financial writing, she taught English writing skills to high-school age students. Sara’s work has been published on various financial and Forex blogs.