Forex markets were relatively subdued in early trade this morning, with the main feature being the continued pick-up in the US dollar. The Dollar Index pushed back up over 99.00, having dropped to 98.62 on Thursday last week.
The turnaround came as a clutch of US Federal Reserve officials stated that they would prefer to keep the Fed Funds rate unchanged at next month’s meeting, rather than making another cut. This boosted the dollar’s appeal somewhat, although the Dollar Index is still a long way below the recent high of 100.00, which was hit less than a fortnight ago.
Meanwhile, the Japanese yen continues to display some weakness. The USD/JPY has been trading just shy of 155.00 since Wednesday last week. So far, any attempt to push above this level has been met with dollar selling/yen purchases.
The Bank of Japan remains a quiet but notable presence in the background, and the currency’s ability to stabilise despite broader dollar firmness stood out in an otherwise low-energy trading environment. Overall, the FX space lacked direction this morning, mirroring the hesitation seen across the broader market.
Source: TN Trader
