U.S. Dollar Trades Nearly Flat Against Major Currencies

U.S. Dollar Trades Nearly Flat Against Major Currencies

The U.S. Dollar continues to trade marginally lower than the Euro as the market participants are eagerly waiting for the monetary policy stance of the Federal Reserve, which will be out by Wednesday this week. The EUR/USD is seen trading down by 0.21% to 1.0830.

The Federal Reserve stance

The market expectations reflect beliefs that the Central Bank is likely to keep the rate hike on hold due to global uncertainty. The Fed had announced first rate in nearly a decade last month in December.

The Euro remains under pressure after the European Central Bank chief Mario Draghi signalled at the possibility of taking additional monetary easing measures. Also, a decline in the German business climate index to 107.3 from 108.6 also weighed on the Euro.

Japan’s battling with weakness in exports

Meanwhile, the U.S. Dollar continued to lose ground against the Japanese Yen after Bank of Japan Governor Haruhiko Kuroda hinted to undertaking more stimulus measures last Friday. Analysts are anticipating some monetary easing measures towards the end of the year. USD/JPY is lower by 0.24% to 118.01 today. Japan is already confronting a sequential decline in its monthly exports, which fell 8% during the last month.

Meanwhile, both the New Zealand and Australian Dollar traded lower than the greenback. NZD/USD shed 0.12% to trade at 0.6448 before hitting a low of 0.6425. The pair is expected to get support at 0.6409 and resistance at 0.6534. On the other hand, AUD/USD was down by 0.01% to 0.6953, trading nearly flat.

Up ahead in the day, the investors will be looking forward to consumer confidence data in the U.S. to be published later today to gauge the economic progress.

Elsewhere, GBP/USD was sharply down by 0.42% to 1.4187 during the late Asian trading hours. The U.S. Dollar Index was moderately higher by 0.02% at 99.37 against the basket of other global currencies.