WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Dollar Softer, Investors Ponder December Fed Rate Hike View

Posted by Chris Advincula on Oct 19, 2016 8:21:29 AM



(Oct 19 Reuters) The dollar index was subdued on Wednesday as Treasury yields ticked lower after U.S. consumer prices suggested underlying inflation was moderating, prompting investors to trim bets on an interest rate hike later this year.

The index DXY was down 0.2 percent at 97.696, below Monday's seven-month high of 98.169. Against the yen, it was down 0.5 percent at 103.35 yen JPY, while the euro was slightly higher at $1.09965 EUR.

The dollar struggled to gain traction in the wake of the U.S. inflation data on Wednesday. The core consumer price index (CPI), which strips out food and energy costs, gained 0.1 percent last month after climbing 0.3 percent in August. The year-on-year increase in the core CPI  slowed to 2.2 percent following a 2.3 percent rise in August. ECONUS

Fed fund futures imply around a 65 percent probability of the Federal Reserve raising interest rats by December, down from 70 percent before the CPI data.

"The U.S. data has not been great and U.S. rates have eased on the back of that. That has seen dollar/yen come under some pressure, but we expect some decent buying around the 103-103.50 yen level," said Yujiro Goto, currency strategist at Nomura.

Click on the link below to see the full story from Reuters: (by Anirban Nag)

Dollar Softer, Investors Ponder December Fed Rate Hike View



Topics: $USDJPY, US Dollar, Forex, $EUR, Federal Reserve monetary policy, Fundamentals


Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

Browse our frequently asked questions and find your answers right away.

Access to the educational lessons, webinars and platform walkthroughs.


Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!