U.S. Dollar Slips as Markets Await Fed Policy Meeting

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Investing.com – The U.S. dollar slipped on Monday in Asia as traders awaited the upcoming Federal Reserve policy meeting later this week where Fed Chair Jerome Powell could open the door to rate cuts later in the year.

The U.S. dollar index last traded at 96.990, down 0.1%. It rose to its highest level in almost two weeks on Friday after the release of better-than-expected retail sales data for May.

“In addition to the upbeat U.S. data, the dollar is supported by weakness in other currencies, notably the euro and antipodeans,” said Junichi Ishikawa, senior FX strategist at IG Securities, in a Reuters report.

“The Fed might cut rates sooner or later but so might its antipodean counterparts as well as the European Central Bank, and such views put the dollar at an advantage.”

The USD/CNY pair was little changed at 6.9238. Chinese data on Friday flashed more warning signs, with industrial output growth unexpectedly slowing in May to a more than 17-year low.

On the Sino-U.S. trade front, U.S. Commerce Secretary Wilbur Ross said he does not expect a major trade deal between President Donald Trump and his Chinese counterpart Xi Jinping at the upcoming G-20 meeting.

“I think the most that will come out of the G-20 might be an agreement to actively resume talks,” Ross said in an interview Sunday with the Wall Street Journal.

His comments came after Trump said on Friday it didn’t matter if Xi attends the summit, adding that China would eventually make a trade deal with the U.S.

The USD/JPY pair gained 0.1% to 108.59.

Original article seen on Investing.com