The dollar’s value registered a slight gain on Wednesday in Asia even as it continued to trade at its lowest within the period of the last three weeks. The investors trod cautiously as numbers related to the US job market coming out on Friday will be important for the US Federal Reserve’s strategy for tapering assets.
On August 20, Dollar climbed to 93.734, its highest value in the last nine and half months. However, since then, the greenback is witnessing largely a negative growth in its value, with some officials in the US Fed hinting that the tapering process won’t start immediately. The Chairman of the US Federal Reserve, Jerome Powell, said that the process of asset tapering could begin in the year 2021, but he refrained from providing any specific date or month. Loretta Mester, Cleveland Fed President, also said that the Fed is not fully convinced from the inflation data to achieve its price stability objective.
US Conference Board consumer confidence index was recorded 113.8, which is the lowest in the last six months, although the house price index composite grew with a substantial rate of 19.1% in the month of June. The most important parameter of consideration for the Fed is the data from the labor market, which is to be released this Friday. One of the primary conditions for the US Fed to start the asset tapering process is the labor market’s recovery. Hence, Forex Brokers will closely watch the data when it comes out in the public domain on Friday.
The value of the US dollar index was down on Tuesday and fell to 92.395 – its lowest value since August 6, 2021. While USD/JPY went up by 0.16% to 110.19, AUD/USD pair went down by 0.01% to 0.7314. USD/CNY, on the other hand, reached 6.4633 with an increase of 0.04%. The GBP/USD pair also suffered a loss of 0.11% and fell to 1.3739.