Forex: The Dollar continues its rally until the Fed next week

Investing.com – The u.s. dollar was slightly higher Thursday as traders anticipate more of a reduction of interest rates by the Federal Reserve in the coming months.

The dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.1% to 97,053 at 16.25.

The inflation of the price of the consumption published on Wednesday helped support arguments in favour of a reduction of rates, because it has declined since the goal of 2% set by the Fed.

Traders speculate on the possibility that the central bank changes its monetary policy due to the slowdown of inflation and the rise in trade tensions.

The Fed is expected to maintain its key rates unchanged at its meeting of 19 June, with a probability of market for a cut at the July meeting, according to the surveillance tool, the Fed funds rate d’Investing.com.

The dollar was lower than the japanese yen, with USD/JPY down 0.01% to 108,47 while trade tensions persist.

The president, Donald Trump has refused to set a deadline to increase the import duties on the chinese products, insisting on the fact that the two countries would conclude an agreement, while assuming the responsibility for the delay in the meantime.

“I don’t have a deadline. My deadline is this that is here,” he said, showing his head during a press conference held Wednesday.

The euro has fallen slightly, with EUR/USD down 0.1% to 1,1271. The british pound is higher, with GBP/USD winner 0.1% to 1,2690, while USD/CAD slipped by 0.1% to 1,3329.

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