Reuters
Published Aug 26, 2020 09:56
* 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
https://tmsnrt.rs/3lfXwfQ
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Written By: Reuters
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