Forex – dollar declines after comments from the Fed

© Reuters.

See also our analysis of EUR/USD on describing the influence of the words of the Fed today on the Euro-Dollar – The greenback has depreciated on Wednesday after comments accommodating officials of the federal Reserve have strengthened expectations that the central bank would slow the pace of its interest rate hikes.

The dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.72% to 94,79 at 10: 20 (15h20 GMT).

The chairman of the u.s. federal Reserve, Jon Bostic, said during an event in Tennessee that the increase in December would increase the rate to a neutral level, and that the Fed should exercise patience and to better understand the economic risks.

Investors also await with impatience the minutes of the December meeting of the Fed, which will be released at 14: 00, eastern time (19h00 GMT). Investors will examine the document carefully to detect any possible rate increases during the year ahead, particularly after comments from Fed chairman Jerome Powell, who said that the central bank wants monetary policy if necessary.

The USD / CAD fell to its lowest level in a month after the Bank of Canada has decided to maintain its key interest rate unchanged, because of the trade conflict between the United States and Canada and the slowdown of global demand. The USD / CAD has dropped from 0.5% to 1,3208.

The british pound was on the rise but still under pressure compared to the Brexit. The GBP / USD rose 0.60% to 1,2791. The future of Great Britain remains uncertain, because the government is not likely to get another deal if the bill fails, which increases the chances of Brexit hard the 29 march.

Elsewhere, the EUR / USD climbed 0.83% to 1,1533, while the AUD / USD rose 0.7% to 0,7188 and the NZD / USD rose 1.23% to 0,6804.

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