The Dollar dashed high but the future seems uncertain over Fed policy
- The U.S currency is alive again on Wednesday with an inched high.
- Fed Chairman Jerome Powell hopefully remain peaceful over the first policy meeting.
The Dollar is slightly elevated on Wednesday morning in Asia. Investors are eagerly waiting for the U.S. Federal Reserve’s policy Verdict which is going to be finalized later in the day.
The U.S. Dollar Index inched up 0.01% to 90.175 against the basket of other currencies.
The USD/JPY pair is slightly up 0.08% to 13.69.
The AUD/USD pair inched up 0.01% to 0.7744. Meanwhile, the Inflation figures released today are better than the expectation.
The CPI rose 0.9% quarterly and yearly during the fourth quarter of 2020.
The NZD/USD pair slightly down 0.10 to 0.7230.
The USD/CNY inched down 0.03% to 6.4612.
The GBP/USD pair inched down 0.1% to 1.3732.
The U.S. Currency appears to fell against the riskier currencies following the International Monetary fund reformed its prediction for 2021 Global growth in order to recuperate the ruptured economic situation due to the coronavirus pandemic.
The expectation for global economic growth is around 5.5% this year according to the institution and GDP to lengthen by 4.2% in 2022. Nonetheless, to state that new COVID-19 variant would hinder the growth somehow.
Investors are in dilemma with the proportions and timing of the stimulus package proposed by U.S President Joe Biden that leads the nightly declination of U.S. Treasury Yields.
Investor waits for the statement of Fed Chairman Jerome Powell that is due to speak at the news conference about the first policy meeting on Wednesday. Most likely the anticipation of renewal to the current ultra-easy policy is on the papers. Therefore, it is might be going to pull the dollar down in near future.
Meanwhile, earlier in the week, there is a high chance that democrats would try their best to pass the stimulus package with the majority of the vote and even try to negotiate with the republican colleagues for support.