On Wednesday, the US dollar is stable, as a waiting mood prevails among traders. Markets are waiting for the results of the Fed meeting scheduled for today, which is expected to lower interest rates by the regulator for the first time since 2008.
The Fed is expected to cut its key rate by 25 basis points. Also, increased attention will be paid to whether the Fed will leave the door open to further soften its policies in order to protect the world's largest economy from the effects of slowing global growth and trade conflicts.
The Fed is likely to try not to risk with a clear prospect of a future rate cut, so it is expected that the comments of the head of the regulator Jerome Powell will be as uncertain as possible. Any vague words about the future decisions of the American central bank will give the dollar an additional stimulus to growth.
The US dollar is trading steadily, at 108.575 against the Japanese yen. In relation to the single European currency, the USD rate is 1.1154 dollars. The Bank of Japan (BOJ) on Tuesday refrained from expanding incentives but pledged to do so “without hesitation” if the global economic slowdown threatens the country's economic recovery.
The dollar index in relation to the basket of six major currencies also almost did not change, settling at 98.055 after rolling back from a two-month high of 98.206 the day before.
The British pound managed to stabilize somewhat at the level of 1.2153 dollars, recovering from a 28-month low of 1.2120 dollars recorded yesterday.
The Australian dollar managed to pull back from a six-week low and rose after the data on the consumer price index in the second quarter were better than expected. AUD rose by 0.25% to $ 0.6889 after dropping to $ 0.6832 earlier, the lowest level since June 19.
The New Zealand dollar, in contrast, fell after polls showed that the country's business sentiment fell to an 11-month low in July, which added to expectations of a rate cut by the national regulator next week. NZD fell by 0.3% to $ 0.6594.
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Forex trading recommendations:
EURJPY: Buy. Entry point – 121, 05. Take profit – 121, 26. Stop Loss – 120, 68.
NZDUSD: Sell. Entry point – 0, 6599. Take Profit – 0, 6584. Stop Loss – 0, 6625.
USDCHF: Sell. Entry point – 0, 9913. Take Profit – 0, 9894. Stop Loss – 0, 9945.
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