15.01.2019: What are odds USD will recover?


The US dollar was trading sideways in the
Wall Street session amid the rising likelihood that the Federal Reserve will hold off on
raising rates this year. The Fed officials decided to revise its monetary
policy, citing a slowdown in the global economy. Last week, Jerome Powell said that the regulator
intends to pause in the cycle of monetary tightening with the aim of propping up steady
inflation in the US. Meanwhile, the record-setting government shutdown
is still going on. The President rejected the idea to reopen
the government and to discuss what to do about the border protection. Trump replied that he is not interested. “I wanted to get it solved; I don’t want
to just delay it,” he said. American traders view this as a signal to
be cautious about choosing an asset to buy. As a result, the US dollar index remains at
the level slightly below 95.60. In the Asian session, traders were resolute
in trading preferences. They opted to buy the US dollar. The dollar/yen pair gained more than 40 pips
and after a minor downward correction settled at 108.60. Amid the lack of fresh news on the trade relations
between the US and China, investors are expressing appetite for risk. So, the New Zealand dollar is gaining ground
versus the greenback. The NZD/USD pair is trading higher at near
0.6840. The ANZ business confidence index in New Zealand
rose in December, though being trapped on negative territory. The report convinced traders to open long
bets on this trading instrument. Today the US dollar could grab a chance to
assert its strength as a factory inflation report is due in the US in the second half
of the global trading day. Besides, investors are alert to speeches of
Fed officials who might drop some hints about the central bank’s plans on further monetary
tightening.

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