The US currency holds around a two-week high on Wednesday on the eve of an important release following a two-day Fed meeting at the end of the day, which is the focus of today's traders. The dollar is also supported by the dovish sentiment of the European regulator and the eurozone bearish economic data. The dollar index remained stable versus a basket of six major currencies at 97.653 after rising on Tuesday to 97.766, its highest level since June 3.

Today, early morning, the Reserve Bank of Australia decided to keep interest rates unchanged at 1.5%. The regulator based his decision on the fact that the recent release in terms of inflation did not meet expectations. In addition, the economic uncertainty within the country makes itself felt by a decrease in household spending and housing prices.

As expected by our recent forecasts, the single European currency is under strong pressure from the US dollar and, at the moment, is actively selling in the foreign exchange market. The reason for this is the expectation of strong US labor market statistics coming out today. NFP forecast >

The release on the US labor market, which will be published this Friday, is in the focus of Forex traders. Intrigue adds the resumption of the strengthening of the US currency against the background of not very good fundamental data on the state of the European economy, published recently. NonFarm Payrolls Last data: 196K Consensus forecast: 185K

The European Central Bank will almost certainly leave the monetary policy unchanged following the meeting on Thursday, but it can recognize a sharp slowdown in economic growth, increasing the chances of postponing further normalization of policy. The ECB completed a € 2.6 trillion ($ 2.96 trillion) bond buying program in December and confirmed the forecast that the regulator is likely to raise the interest rate later this year.

The price of gold is falling at the first half of Wednesday against the backdrop of ongoing negotiations between Washington and Beijing on trade issues that increase investors’ risk appetite. Also, investors tend to play the "dovish" statements of the US Federal Reserve. As of early morning, the price of the February gold futures on the New York Stock Exchange Comex fell by 2.1 dollars, or 0.16% - up to 1,283.8 dollars per troy ounce. The cost of the March silver futures decreased by 0.2% - to 15.682 dollars per ounce.

Tomorrow, on the first Friday of the first month of the new year, the attention of traders will be directed to a fresh package of US fundamental data on the labor market. NonFarm Payrolls Last data: 155K Consensus forecast: 177K

The US currency holds positions close to the 19-month highs at the beginning of the new trading week, amid increased investor nervousness regarding the slowdown in the global economy, which led to a decrease in demand for risky assets such as stocks and Asian currencies. At the moment, the EURUSD pair is at 1.1316 and the single European currency is trading in a small plus.

The US currency rose against a basket of major competitor currencies on Friday, while traders are switching their attention to the expected increase in the Fed rate next week. Nevertheless, the uncertainty of the American regulator regarding the financial and credit policy in 2019 restrains the growth of the dollar. The Fed is expected to raise the interest rate by 25 basis points at the end of its meeting next week, but investors will focus their attention on the forecast of the regulator’s policy for the next year.

The US currency on Wednesday morning settled next to the monthly maximum of the major competitor currencies amid rising US government bond yields and a weakening British pound amid ongoing uncertainty around Brexit. The US dollar index this morning was near the level of 97.397 after rising to 97.545 during yesterday's trading. According to British analysts, the weakening of the pound also contributed to the increase in the dollar, which at the beginning of the week plummeted as British Prime Minister Theresa May delayed the vote on the Brexit deal in parliament.

The first Friday of the month will again be marked by a fresh package of American fundamental data on the labor market. NonFarm Payrolls Last data: 201K Consensus forecast: 185K We expect that in September the volume of employment in the US non-farm sector will show an increase of 185 thousand new jobs. This is less than the previous figure, but, nevertheless, these figures also indicate a very good “health” of the American economy.

Today traders expect a fresh package of American fundamental data on the labor market. NonFarm Payrolls Last data: 157K Consensus forecast: 191K Last month’s release on NFP was, to the surprise of many, a little disappointing and unexpected. Nevertheless, such "blotches" are quite possible and they do not talk about the general weakening of the US economy. We expect the US economy to add about 191,000 new jobs in August, compared to the previous figure of 157,000.

The dollar recovered from a two-week low against a basket of six major currencies on Monday, though trade was thin due to many markets being closed for the New Year holiday.

This Friday, traders expect one of the most important fundamental releases - a report on the number of people employed in non-agricultural field of the US economy (Nonfarm payrolls). Based on the results of that publication, it will become even clearer how really strong the US dollar is.