U.S. Dollar Weakens As Investors Await Fed Announcement
02 Noviembre 2022 - 5:05AM
RTTF2
The U.S. dollar lost ground against its most major counterparts
in the European session on Wednesday, as investors focus on the
Federal Reserve's monetary policy decision for any shift to a
slower pace of tightening in the future.
The Fed will conclude its two-day meeting at 2:00 pm ET,
followed by a press conference with Chairman Jerome Powell half an
hour later.
Investors expect the Fed to raise its rates by 75 basis points
later today, but they are divided on the possibility of a 75- or
50-bp hike in December.
Data from payroll processor ADP showed that U.S. private sector
employment increased more than expected in the month of
October.
ADP said private sector employment jumped by 239,000 jobs in
October after climbing by a downwardly revised 192,000 jobs in
September.
Economists had expected private sector employment to advance by
195,000 jobs compared to the addition of 208,000 jobs originally
reported for the previous month.
The currency has been falling against its key counterparts in
the previous session.
The greenback dropped to a 5-day low of 146.82 against the yen,
from a high of 148.38 set at 6 pm ET. The greenback may test
support around the 144.00 region, if it falls again.
The greenback weakened to 0.9943 against the franc and 0.9915
against the euro, down from its early highs of 1.0010 and 0.9870,
respectively. The greenback is seen finding support around 0.96
against the franc and 1.08 against the euro.
The greenback declined to 0.5892 against the kiwi and 0.6430
against the aussie, after rising to 0.5834 and 0.6385, respectively
in early deals. The greenback is poised to find support around 0.62
against the kiwi and 0.70 against the aussie.
In contrast, the greenback was trading higher at 1.3649 against
the loonie. On the upside, 1.38 is likely seen as the next
resistance level for the greenback.
The greenback reversed from an early low of 1.1527 against the
pound, with the pair trading at 1.1475. Next key resistance for the
greenback is seen around the 1.12 region.
At 2:00 pm ET, the Fed announces its decision on interest rate.
The central bank is expected to raise the target range for the
federal funds rate by 75 basis points to 3.75 percent to 4.00
percent.
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