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Forex - Dollar Flat Ahead of Fed; Johnson Fails to Win Support for Dec 12 Election

Published 29/10/2019, 04:05 pm
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Investing.com - The U.S. dollar was near flat on Tuesday in Asia as traders awaited a highly-anticipated Federal Reserve meeting this week.

The US Dollar Index that measures the greenback against a basket of other currencies was unchanged at 97.552 by 12:45 AM ET (04:45 GMT). The Fed is highly expected to cut rate for the third time this year on Wednesday when policy makers meet, but investors will be watching for any indication that further cuts are likely.

Markets also continued to pay close attention to the Sino-U.S. trade development. Tension between the two nations eased somewhat as the Office of the U.S. Trade Representative (USTR) said Washington is considering extending certain tariff exclusions on $34 billion of Chinese imports.

The news came after U.S. President Donald Trump said overnight that a trade agreement looked to be ahead of schedule, without detailing the timing.

Meanwhile, the GBP/USD pair slipped 0.1% after U.K. Prime Minister Boris Johnson failed to win support for an early general election.

The vote came just hours after European Union Council President Donald Tusk also confirmed that the EU has agreed to extend the deadline for Brexit until Jan. 31, 2020 as request from the U.K. government.

The USD/JPY pair inched up 0.1%. The Bank of Japan sets policy on Thursday, while Governor Haruhiko Kuroda will hold a news conference.

The AUD/USD pair and the NZD/USD pair rose 0.2% and 0.3% respectively.

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