The U.S. Dollar index rose as Federal Reserve gave upbeat expectations of the world’s biggest economy

The U.S. Dollar index rose as Federal Reserve gave upbeat expectations of the world’s biggest economy

August 2, 2018 0 By Ali Hwary

The U.S. Dollar index rose against a basket of six major currencies to end Wednesday’s session in the green at 94.67 after the U.S. Federal Reserve gave upbeat expectations of the world’s biggest economy and stayed on course to gradually raise interest rates

The Federal Open Market Committee members ended their two-day meeting and kept interest rates unchanged at 2 percent as was widely expected, the FOMIC added that the U.S economy was growing strongly and the job market is expected to remain robust.

Moreover, the U.S. ADP Nonfarm Employment Change came at 219,000 higher than expectations and the previous reading which came at 186,000 and 181,000 respectively.

The ISM Manufacturing PMI came at 58.1 lower than both the previous reading and expectations which came at 59.4 and 60.2 respectively.

In Eurozone, the Euro fell against the Greenback to end the session in the red at 1.1659 EURUSD.

In the economics space, the German Manufacturing PMI which was expected to show a figure of 57.3 came lower at 56.9.

Meanwhile, in the U.K., the Great British Pound was slightly higher against the U.S. Dollar to end the session at 1.3125 GBPUSD, Investors will be keeping an eye on BoE interest rate decision as it’s widely expected to raise interest rates for the second time since the 2008 financial crisis.

Furthermore, the U.K. Manufacturing Purchasing Managers Index came at 54 slightly lower than expectations of 54.2 and the previous reading

In terms of the safe-havens, the Greenback fell against the Japanese Yen to trade at 111.74 USDJPY after the Bank of Japan kept rates extremely low for an extended period as expected. On the other hand, the Swiss franc fell to close at 0.9919 USDCHF.

Regarding the precious yellow metal, Gold fell on Wednesday’s session to trade at 1215.75 XAUUSD pressured by a stronger U.S. Dollar.

Elsewhere in Canada, the Greenback fell against the Loonie to end the session slightly higher at 1.3001 USDCAD despite the fall in oil prices which ended the session 67.84 a barrel after the Crude oil stockpiles showed an increase by 3.8 million barrels.

In Asia, both the Aussie rose against its U.S. counterpart to end the session in the green at 0.7403 AUDUSD while the Kiwi fell to close at 0.6790 NZDUSD.

Regarding Cryptos, Bitcoin, Litecoin, and Ethereum fell sharply against the Greenback to end the session in the red 7460 BTCUSD, 74.22 LTCUSD, and 406.96 ETHUSD.

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