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FOREX-Dollar edges higher, but stuck in range before Powell speech

Published 26/08/2020, 11:56 pm
© Reuters.
EUR/USD
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USD/JPY
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USD/NOK
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DX
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USD/CNH
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* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Adds details, updates prices)

By Karen Brettell

NEW YORK, Aug 26 (Reuters) - The dollar gained on Wednesday but stayed within a relatively tight range a day ahead of a highly anticipated speech by Federal Reserve Chairman Jerome Powell.

Powell is scheduled to address the U.S. central bank's policy framework review, and investors are focused on whether he will hint at shifting the Fed's inflation target to an average.

"Targeting average inflation over time rather than setting a fixed 2% goal would likely mean lower rates for longer," said Raffi Boyadjian, senior investment analyst at online broker XM. "If the Fed confirms such a move, the greenback would stand little chance of a meaningful rebound anytime soon."

The Fed is thought to be still finalizing details of its review, however, with an announcement expected at its September meeting.

That risks leaving investors disappointed on Thursday if Powell does not announce the change.

“Markets are anticipating a dovish lean from Powell," Jonathan Coughtrey, managing director at Action Economics, said in a report. "Any sense of disappointment could catalyze a rebound phase in the dollar, which has been trending lower since March.”

The dollar index, which tracks the greenback's value against a basket of currencies =USD was up 0.15% at 93.14.

The index hit a session high of 93.37 after data showed that U.S. durable goods orders increased more than expected in July, but fell back again. euro EUR= dipped 0.26% against the greenback to $1.1802.

The yuan CNH= rose toward a seven-month high at $6.6879 after U.S. and Chinese trade officials reaffirmed their commitment to a Phase 1 trade deal, which eased concerns about a diplomatic standoff between the world's two-largest economies.

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Currency bid prices at 9:35AM (1335 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=

$1.1802

$1.1833

-0.26%

+5.28%

+1.1840

+1.1773 Dollar/Yen

JPY=

106.2600

106.3600

-0.09%

-2.39%

+106.5500 +106.1700 Euro/Yen

EURJPY=

125.43

125.88

-0.36%

+2.85%

+126.1400 +125.2800 Dollar/Swiss

CHF=

0.9095

0.9075

+0.22%

-6.02%

+0.9120

+0.9075 Sterling/Dollar GBP=

1.3155

1.3150

+0.04%

-0.78%

+1.3165

+1.3118 Dollar/Canadian CAD=

1.3173

1.3168

+0.04%

+1.46%

+1.3205

+1.3159 Australian/Doll AUD=

0.7213

0.7194

+0.26%

+2.73%

+0.7214

+0.7188 ar

Euro/Swiss

EURCHF=

1.0735

1.0740

-0.05%

-1.08%

+1.0759

+1.0734 Euro/Sterling

EURGBP=

0.8970

0.8997

-0.30%

+6.10%

+0.9006

+0.8966 NZ

NZD=

0.6567

0.6546

+0.32%

-2.51%

+0.6573

+0.6545 Dollar/Dollar

Dollar/Norway

NOK=

8.9284

8.9646

-0.40%

+1.71%

+8.9847

+8.9310 Euro/Norway

EURNOK=

10.5390

10.5974

-0.55%

+7.12%

+10.6200

+10.5379 Dollar/Sweden

SEK=

8.7398

8.7532

-0.40%

-6.50%

+8.7891

+8.7425 Euro/Sweden

EURSEK=

10.3160

10.3573

-0.40%

-1.46%

+10.3736

+10.3170

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC-U.S. dollar sheds 10% since late March

https://tmsnrt.rs/3lfXwfQ

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