US Dollar Index dipped during Thursday’s session against news about the US Federal Reserve. This week, the US Federal Reserve officials are scheduled to have their annual Jackson Hole Seminar.
Jerome Powell, US Fed Chairman, is expected to make a speech on Friday addressing the recent Treasury yield curve inversion.
The USD Dollar had a rather steady run in the earlier half of Thursday’s session. But the buck failed to hold on and slumped in the latter half of the day.
The US Dollar Index dropped by 0.15%, or 0.14 points, yesterday. And the US Dollar Index Futures declined by 0.12%, or 0.119 points, in sessions.
Just last month, Jerome Powell and the US Fed have slashed interest rates, recording the first since 2008. According to Fed officials, the rate cut is part of recalibration, given the uncertainties in the global economic outlook.
News about the US Treasury and the Fed are the current major directional drivers of the USD dollar in sessions. However, buck traders are still debating whether the rate cut is the real reason for the USD’s strength or Trump’s tariffs.
The greenback has been on a very volatile ride since the trade war began; and now, traders are expecting another rate cut in next month’s Fed meeting.
More USD Pairs
The USD dollar trading pairs saw different directions in yesterday’s trading. The EUR/USD pair rose 0.18% or 0.0019 points and has hit ranges between $1.1076 to $1.113 in sessions.
The GBP/USD exchange rate went up by 0.16%, or 0.0020 points, in Thursday’s trading. The pair extended its gains from $1.2109 to $1.2156 in the sessions.
Meanwhile, on the Eastern part of the world, the USD dollar and its other currency pairs entered negative territories. The AUD/USD declined by 0.20%, or 0.0014 points, and has reached levels between $0.6757 and $0.6787.
The CNY/USD edged down by 0.34% or 0.0005 points; the pair traded around $0.1411 to $0.1416 during yesterday’s sessions.