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By Associated FX Analysis Team

Kantox currency update: US dollar drops after the dovish Fed minutes

Published April 11, 2019

Federal Reserve Bank

The dollar slid further on Wednesday, to hit its lowest levels in two weeks against a basket of the most traded currencies, under pressure after the Fed monetary policy minutes confirmed that the Bank discards any interest rate hike in 2019.

In Europe, the pound ticked up, with the investors relieved by the agreement between the EU and UK to extend the Brexit deadline until 31 October, which has eased concerns about the consequences of a chaotic withdrawal

 EUR/USD bounces up from 1.1230. The euro dropped to session lows at 1.1230 after the monetary policy statement by the European Central Bank, but it managed to pare loses later on, with the US dollar weighed by the Federal Reserve minutes, and closed the day with moderate advances near the last two-weeks’ highs at 1.1285. As at the London market opening times, the EUR/USD is trading at 1.1285.

GBP/USD remains steady near 1.3100. The pound ticked up on Wednesday, fuelled by the Brexit extension agreement with the EU, although the pair remains trading within the previous days’ ranges, capped below 1.3100/ 1.3120 area. As at London market opening times, the GBP/USD is trading at 1.3085.

 USD/JPY testing support at 111.00 area. The dollar extended its reversal on Wednesday after the release of the Fed’s minutes to reach levels below 111.00 for the first time in the last two weeks, although the pair has managed to trim losses on Thursday’s early trading. As at London market opening times, the USD/JPY is trading at 111.15.

 

In the Calendar Today

 In the absence of more relevant macroeconomic indicators, only the speeches of some Federal Reserve officials might have some impact on currency volatility.

13:30   GMT      Fed: Clarida’s speech

13:40   GMT      Fed: Bullard’s speech

20:00   GMT      Fed: Bowman’s speech

 

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