Interest Shifts Towards Dollar Expecting US Housing Data
By Daisy Joseph
Wednesday has been good for the US dollar as the currency held its position steady in the market. The declining oil price has not caused a major impact on the currency value of the dollar. In fact, the weakening of other currencies against the dollar has indirectly resulted in the strengthening of the dollar.
Following the interest rate hike, the Federal Reserve officials have released comments doubting their belief in the growth of US economy. The shift in the opinion of the Fed has worried the investors as the proposed interest rate hike may become improbably. Due to these reasons, the importance of US housing data has increased multifold. Investors have helped the US dollar to hold its steady position in the market because the housing data may have a greater impact when announced later in the day.
EUR/USD pair reached 1.1147, gaining 0.12%. GBP/USD was trading at 1.2615 after losing about 0.13%. The public sector net borrowing as reported by the UK Office for National Statistics pointed out an increase of £5.99 billion which did not favor Sterling in the market. The USD/JPY pair was trading at 111.22, losing 0.21%.
Following the steady value of the dollar, US dollar index which is a measure of the strength of greenback against international currencies also steadied at 97.34. The USD/CAD pair was trading at 1.3293 gaining about 0.19%.
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