Forex – Dollar at 2-Week Highs with Fed, Trade in Focus

© Reuters. – The dollar was trading at two-week highs against a currency basket on Wednesday as markets awaited fresh signals from the Federal Reserve on interest rates and developments in the U.S.-China trade war remained in focus.

The , which measures the greenback’s strength against a basket of six major currencies, edged up 0.1% to 97.35 by 04:25 AM GMT (09:25 AM GMT), the most since Nov. 13.

Investors were looking ahead to a speech by Fed Chairman Jerome Powell later in the day and the minutes of the U.S. central bank’s November meeting, due to be released on Thursday. Markets are hoping for fresh indications on the future path of interest rate increases.

The Fed is widely expected to raise rates for a fourth time this year at its upcoming meeting in December and has indicated that it may raise rates three more time in 2019.

But dovish sounding comments by some policymakers in recent weeks have raised the prospect that the Fed may slow the pace of future rate hikes amid concerns over the outlook for the global economy and ongoing global trade tensions.

On Tuesday, U.S. President Donald Trump , whom he picked last year to lead the bank, and the Fed’s rate hikes, which he said were harming the economy.

Also Tuesday, Fed Vice Chair Richard Clarida , but said the tightening path would be data dependent.

Market watchers were also looking ahead to the upcoming G20 summit in Buenos Aires later this week, where , are scheduled to discuss trade. Investors are hoping that talks could lead to a ceasefire in the trade war.

Trump said earlier this week that it was “highly unlikely” he would accept China’s request to hold off a planned increase in tariffs due to take effect in January.

The dollar was holding steady at two-week highs against the yen, with at 113.79.

The euro was at two-week lows against the dollar, with changing hands at 1.1285.

The pound edged higher, with rising 0.13% to 1.2763. The Bank of England was to release it assessment of the UK’s Brexit withdrawal agreement later in the day, which was scenario.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.