US Dollar Holds on to Gains After Fed News

News from the US Federal Reserve minutes gave the USD dollar some strength to hold on to some of its gains. The USD dollar continues to trade in positive territories since yesterday.

The US Dollar Index inched up by 0.03% or 0.03 points in today’s session. the US Dollar Index Futures moved up by 0.03% or 0.029 points.

The greenback continues to hover to a third week-straight of gains ahead of the US federal reserve minutes. Buck investors are looking forward to the minutes in July’s meeting for hints about the outlook of the dollar.

Last month, the US Fed made the first rate cut in over a decade. Fed Chairman Jerome Powell called it a “mid-cycle adjustment.”

However, due to the escalating trade conflict with China, more buck traders are anticipating deeper cuts before 2019 ends.

July’s minutes will come ahead of the Fed’s yearly Jackson Hole seminar this week. The Fed Chairman is expected to give a speech on Friday during the event.

Powell is expected to address the recent inversion of the Treasury yield curve which is a classic sign of a recession. The news about the US Treasury yield curve heightened the possibility of another rate cut in September’s meeting.

USD Dollar Pairs

The buck has seen positive gains against the major currencies of Europe; the euro and pound sterling.

The EUR/USD pair rose 0.18% or 0.0018 points in Thursday’s trading. The pair currently trades for $1.1102 compared to its last close of $1.1083.

The GBP/USD trading pair inched up by 0.19% or 0.0022 points in sessions. The pound to USD dollar rate is currently at $1.1105.

But despite the Dollar indices gains, the greenback entered negative territories in today’s sessions against the yuan.

The CNY/USD exchange pair declined by 0.27% or 0.0004 points, trading for $0.1413 in sessions. The pair extended its decline to levels between $0.1413 and $0.1416, edging lower compared to its previous close of $0.1417.

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