Dollar resumes gains ahead of Fed meeting minutes

2019-08-21 13:46:43 GMT (
Dollar resumes gains ahead of Fed meeting minutes

US dollar rose against a basket of global currencies today, after its gains were temporarily halted yesterday on profit taking from a 3-week high, amid high hopes in financial markets which led to increased demand on high-yielding assets, ahead of the release of the US Fed's meeting minutes.


Dollar index rose by more than 0.1% to 98.30 points, from the opening of 98.17, with an intraday low of 97.95.


The index fell by 0.2% yesterday, its first loss in 6 days, due to profit taking from a 3-week high at 98.45 points.


US-China trade war concerns eased this week after the US government granted Huawei a 90-day reprieve to buy US products, which raised hopes that the two economies will reach a trade deal.


China has announced an interest rate reform and a cut in corporate borrowing costs, while the German government expressed its readiness to stimulate the economy to face any future economic crisis.


Which has led to improved market sentiment, reflected on increased demand for high-yielding assets, especially stocks and bonds.


Investors are anticipation today the release of the Fed meeting minutes by 18:00 GMT, which was held on July 30-31 last, and resulted in the US interest rate cut for the first time since December 2008.


And some experts believe that the move is unjustified as the US economy performs better than expected despite the rising risks, and may be a way to please President Donald Trump, who is critical of US monetary policy and high interest rates.


Fed chairman, Jerome Powell, said that the current cut will not be the beginning of a series of interest rate cuts.


The minutes is expected to include strong signes on the future of the US interest rate cuts, and in case of pessimistic signes then the market's bets will rise for another rate cut this year.

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