The us dollar stabilized Wednesday before the policy meeting to two days from the u.s. federal Reserve.
The Fed should lower the target range for the federal funds rate 25 basis points at the meeting this week.
Although data stronger than expected retail sales and consumer confidence, associated with the hope of a break in the trade dispute with China, seem to weaken the argument in favour of an easing in recent days.
The dollar index, which tracks the greenback against a basket of other currencies, has changed little in 97,863.
“Speculators are already excessively short on the dollar,” said Yukio Ishizuki, a strategist in foreign exchange at Daiwa Securities in Tokyo, in a report from the Reuters news agency.
“If there are no surprises from the Fed, the speculators will have to give up their short positions on the dollar. The biggest reaction would be on the dollar/yen, because you can’t really buy the pound sterling or the euro for the time being.”
Traders are also attentive to the development of trade in sino-american. The US president, Donald Trump told reporters on Tuesday that Washington could enter into a trade agreement with China before the us presidential election.
The chinese president stated that China would prefer to deal with someone else, but he warned that the terms of the agreement would be “much worse” if it was adopted after the elections of 2020.
“I think there will be an agreement, perhaps soon, perhaps before the elections, or one day after the elections. And if it is after the elections, this will be an agreement as you have never seen before, this will be the best agreement, and China knows it,” said Trump.
The pair USD/CNY was trading down 0.1% to 7,0866.
The USD/JPY pair rose 0.1% to $ 108,22. The comments of Larry Kudlow, an adviser to the White House, that Trump and his administration could officially announce a trade agreement with Japan next week have had a low impact on the pair.
The pair GBP/USD fell 0.4% to 1,2454, the feeling remains low in the face of uncertainty surrounding the Brexit.