{"id":1117,"date":"2018-11-29T05:15:10","date_gmt":"2018-11-29T05:15:10","guid":{"rendered":"https:\/\/forexvarsity.com\/welcome\/?p=1117"},"modified":"2018-11-29T05:15:10","modified_gmt":"2018-11-29T05:15:10","slug":"forex-dollar-extends-losses-as-fed-says-rates-near-neutral","status":"publish","type":"post","link":"https:\/\/forexvarsity.com\/welcome\/forex-dollar-extends-losses-as-fed-says-rates-near-neutral\/","title":{"rendered":"Forex \u2013 Dollar Extends Losses as Fed Says Rates Near Neutral"},"content":{"rendered":"

The dollar slipped on Thursday morning in Asia after the chairman of the U.S. Federal Reserve\u00a0<\/span>Jerome Powell<\/a><\/span>\u00a0<\/span>said interest rates are \u201cjust below neutral,\u201d signaling a potential end of the bank\u2019s cycle of rate hike.<\/p>\n

The\u00a0<\/span>U.S. dollar index<\/a><\/span>, which tracks the greenback against a basket of six major currencies, dropped 0.06% to 96.703.<\/p>\n

Powell said on Wednesday that the Fed\u2019s interest rate of 2 to 2.5% was just below the neutral level. As recently as October, however, Powell had said the rate was \u201ca long way\u201d from neutral.<\/p>\n

\u201cPowell\u2019s comments were read as too hawkish back in October\u2026to some extent his overnight comments have neutralized that. The question now is just how much more dovish markets can get in terms of rate hike expectations\u2026 Investors are now pricing in a December rate hike and only one more rate hike in 2019,\u201d Rodrigo Catril, senior currency strategist at the National Australia Bank, told Reuters.<\/p>\n

This comes after U.S. President Donald Trump told the Washington Post he is \u201cnot even a little bit happy\u201d with his selection of Powell as chair of the Fed. He has repeatedly criticized Powell and the central bank\u2019s decisions on interest rates.<\/p>\n

Minutes from the Fed\u2019s meeting earlier this month are set to be released on Thursday and are expected to provide some indication of future interest rate hikes.<\/p>\n

Another area of focus for investors is the\u00a0<\/span>G20 summit\u00a0<\/span><\/a><\/span>in Buenos Aires starting on Friday, where Trump and Chinese President Xi Jinping are expected to meet and discuss trade issues. Trump\u2019s chief economic adviser Larry Kudlow said on Tuesday that \u201cthere\u2019s a good possibility that we can make a deal, and he [Trump] is open to it.\u201d<\/p>\n

The\u00a0<\/span>USD\/CNY<\/a><\/span>\u00a0<\/span>pair traded 0.15% lower to 6.9433, while the\u00a0<\/span>USD\/JPY<\/a><\/span>\u00a0<\/span>pair also inched down 0.27% to 113.38.<\/p>\n

GBP\/USD<\/a><\/span>\u00a0<\/span>edged up 0.05% despite British Security Minister Ben Wallace\u2019s warning of a no-deal risk for Brexit.<\/p>\n

Down under, the\u00a0<\/span>AUD\/USD<\/a><\/span>\u00a0<\/span>pair fell 0.04% and the\u00a0<\/span>NZD\/USD<\/a><\/span>\u00a0<\/span>pair also dropped 0.32%.<\/p>\n","protected":false},"excerpt":{"rendered":"

The dollar slipped on Thursday morning in Asia after the chairman of the U.S. Federal Reserve\u00a0Jerome Powell\u00a0said interest rates are \u201cjust below neutral,\u201d signaling a potential end of the bank\u2019s cycle of rate hike. The\u00a0U.S. dollar index, which tracks the greenback against a basket of six major currencies, dropped 0.06% Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[9,10,1],"tags":[],"class_list":["post-1117","post","type-post","status-publish","format-standard","hentry","category-homepage","category-latest-news","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts\/1117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/comments?post=1117"}],"version-history":[{"count":1,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts\/1117\/revisions"}],"predecessor-version":[{"id":1118,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts\/1117\/revisions\/1118"}],"wp:attachment":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/media?parent=1117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/categories?post=1117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/tags?post=1117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}