Yen gains as US economy concerns over expectations on Fed accommodative meeting
March 19, 2019 | Tuesday
On Tuesday, the Japanese yen gains while the United States dollar stricken by the concern on the U.S. economy. More importantly, the expectation on the Federal Reserves to prove accommodative on this week's meeting.
Meanwhile, the euro also gain profit from the weaking dollar. That adds 0.17 percent in which then amounting to $1.1355. The markets are expecting the United States Federal Reserve to come with a dovish tone on its upcoming meeting this week. Additionally, it bets on the interest rate cut to increase upon a piece of weaker-than-expected manufacturing information on Friday.
Moreover, the United States currency as measured against its main rivals weakens at about 1.3 percent from the past ten days. Additionally, on Tuesday, U.S. currency drops at about 0.2 percent now at 90.415.
Elsewhere, the Australian dollar gains mostly from the U.S. dollar's retreat. Similarly, the Canadian and New Zealand dollar also performs well, benefiting from the weaking U.S. dollar.
ING analysts said, “Assuming Washington does not turn more aggressive on trade in the near future, expect this more benign environment to continue and to allow local stories to win through."
The volatility within the foreign exchange market comes at its lowest from the past five years. As analysts said recently, decisions made by the Federal Reserve and other main central banks are adding up.
Meanwhile, Sterling also gained as it inclines at about a fifth of a percent, then amounting to $1.3280. Sterling fell overnight upon Britain's parliament speaker upended Prime Minister Theresa Ay's Brexit plans and ruling that the prime minister had to change on her deal (twice-defeated) before she offers it for a third vote.
Furthermore, the Bank of England expects to leave an interest rate outlook and keep it unchanged at a policy meeting scheduled on Thursday due to uncertainty on Britain's decision to leave the European Union.