Kiwi Improves, Dollar Sluggish As Traders Bide Time Before Fed Meeting
Traders have been looking forward to the coming week’s Federal Reserve Policy meeting. The Dollar has been lagging compared to the other peer currencies of different economies. The Kiwi surged by 0.23% by briefly reaching 0.47%. The New Zealand Dollar was able to jump because the economy grew faster than expected by the economists.
The dollar index measures it up against six rival currencies. It was 92.483, with only a little improvement since yesterday. At the beginning of the week, the dollar index reached a two-week high of 92.887, but soon it dropped to 92.321. On September 3, 2021, it hit the lowest for the month at 91.941. This low point came when payrolls data was disappointing.
One of the senior strategists at Barclays in Tokyo recently commented that the Federal Open Market Committee (FOMC) would be a key focus next week. The Dollar is expected to remain sluggish, not going far in any direction. The Federal Open Market Committee (FOMC) is in the news for its two-day policy meeting that will end on September 22, 2021. It has been estimated that Fed is close to implementing a tighter monetary policy.
Due to the implementation of a tighter monetary policy, the Central Bank might reduce buying debt assets, reducing the circulation of Dollars in the economy, and improving the currency’s value.
The Euro has been fluctuating between $1.1909 and $1.17705, currently at $1.1816. The Yen has also been performing strongly recently. One of the major reasons for this improvement is a huge amount of foreign inflow in Japanese shares for Nikkei. Norway’s crown rose with a slight improvement to 8.5710 per Dollar. The Australian Dollar was at $0.7335, without changing much.
One of the brokers and head of research at Pepperstone stated that EURNOK had been considered preferred exposures and that a bearish trend can be expected. Apart from this, by checking our Pepperstone review you will get to know more about this brokerage platform in detail. So, must check it!