As FX traders await the upcoming Fed decision, momentum has driven the US Dollar broadly higher. The US Dollar Index, which traders use to assess the greenback’s relative strength, was nearly 0.3 higher, edging away from last week’s 1-month trough. In individual trading, the greenback appreciated against both the Euro and the Japanese Yen. Though there is a consensus that the Fed won’t make any movements this month, the anxiety is all about the rhetoric contained in the announcement. That could help market players gauge the timing of the next rate hike.
As reported at 9:43 am (GMT) in London, the EUR/USD was trading at $1.1088 down 0.17%; the pair has ranged from $1.1074 to $1.113 in today’s trade. The USD/JPY was trading at 113.6115 Yen, a gain of 0.41% for the greenback; the pair traded at a session low of 113.0100 Yen and a session high of 113.7600 Yen.
Kuroda Reinforces Dovish Sentiment
The Japanese Yen is coming under some renewed pressure after Haruhiko Kuroda, the governor of the Bank of Japan, commented earlier today that he sees more room to cut interest rates even further into negative territory. Many traders had criticized the Bank of Japan’s decision this past January to move to a negative interest rate environment. Kuroda’s failure to follow through with additional rate cuts led some market players to believe he was being influenced by market sentiment on the matter.
