Dollar Remains on the Downside with Fed in Focus

Earlier on Tuesday, the yen hit a 21-month trough versus the euro at 134.15 yen, while the Swiss franc hit 1.1563 francs, its lowest against it since January 2015. The FTSE 100 index of leading British shares was off 0.1 percent.

But caught between a lull in USA inflation and a stronger global economy, the market is uncertain whether the Fed will signal its third interest rate hike of the year or back off until prices rise more briskly. The Dow gained 63.01 points, or 0.3 percent, to 22,331.35.

With the North Korea issue put on the backburner for now and two hurricanes in the rearview mirror, investors turned their attention back to macro issues and particularly the Federal Reserve's policy meeting this week.

Canada's benchmark stock index posted its highest closed in almost six weeks on Monday, led by gains for its heavyweight energy sector, while financials and industrials also gained ground.

Britain's sterling also started to rise again having been pushed off post-Brexit highs on Monday by Bank of England governor Mark Carney who said any upcoming United Kingdom rate hikes would be gradual and limited.

"There's some concern among investors as to how this will work, and how it will affect long-term rates". The Fed is also expected to leave the door open for a rate increase at their December 12-13 meeting.

Prime Minister Shinzo Abe is considering calling a poll for as early as next month to take advantage of his improved approval ratings and disarray in the main opposition party, according to government and ruling party sources.

Investors will scrutinise the post-meeting statement and new economic forecasts for further clues while Fed Chair Janet Yellen is scheduled to address reporters after the meeting. The yield on the 10-year Treasury note fell to 2.24 percent from 2.25 percent late Tuesday. The week will also bring with it housing starts figures on Tuesday, existing home sales on Wednesday, the Federal Housing Finance Agency's house price index on Thursday and the PMI composite flash on Friday. Japanese markets had been closed on Monday for a holiday.

US crude futures were down 1 cent at $49.90 per barrel, within sight of Thursday's almost four-month high of $50.50.

Investors will be listening for any hint of a shift in the central bank's interest rate plans or views on the US economy.

The dollar hovered close to an eight-week high against the yen, buoyed with U.S. Treasury yields having risen to one-month highs before the Fed's policy announcement.

The stronger dollar against the yen buoyed exporters on Tokyo's Nikkei, with the index up 1.5 percent by the break as traders also returned from a three-day break to play catch-up with Monday's global rally.

Brent crude futures were up 0.4 percent at $55.37 a barrel and USA crude rose 0.75 percent to $49.85 a barrel.


Popular
  • Liverpool held as Burnley continues to defy the odds

    Liverpool held as Burnley continues to defy the odds

    FW Mohamed Salah , 7 - Very lively in the first half and had several efforts on goal, the best of which resulted in the equaliser. The Premier League match between Liverpool and Burnley will be available on NBC Sports Gold, which requires a subscription.
    Nintendo Increases SNES Mini Production, Brings Back NES Mini

    Nintendo Increases SNES Mini Production, Brings Back NES Mini

    Nintendo also confirmed that production of the SNES Classic will not cease at the end of 2017 as originally planned. Finally, Nintendo announced that in summer 2018, the NES Classic Edition will return to stores with new shipments.
    TIFF lays out red carpet for Deborah Ellis and The Breadwinner

    TIFF lays out red carpet for Deborah Ellis and The Breadwinner

    Apparently, Jolie took the kids along, because there will be the cartoon " The Breadwinner ", the producer of which she is. Her return to the Disney villainess would mark her first onscreen appearance since her 2015 role in By the Sea .
  • Jean-Claude Juncker warns Britain over Brexit - 'You will regret it'

    Jean-Claude Juncker warns Britain over Brexit - 'You will regret it'

    I must say, it was more a fools' vision of Europe because he seemed to have totally ignored the realities of Europe. Juncker said cyber-attacks "can be more risky to the stability of democracies and economies than guns and tanks".
    South Africa's Desmond Tutu slams Suu Kyi over Rohingya crisis

    South Africa's Desmond Tutu slams Suu Kyi over Rohingya crisis

    The US condemns a "variety" of attacks - "attacks on security forces, attacks on civilians (and) attacks by civilians", he said. Asked if Canada would welcome asylum claims from Rohingya Muslims, the prime minister reiterated a familiar welcoming message.
    Eden Hazard sends Chelsea message to Antonio Conte

    Eden Hazard sends Chelsea message to Antonio Conte

    Jamie Vardy got Leicester City on the board 12 minutes later when he converted a penalty with a right-footed shot to the goal. Hazard, arguably the best player in the Premier League, successfully underwent a surgery soon after.
  • Terror related arrests reach record high

    Terror related arrests reach record high

    The United Kingdom made a record number of terrorism-related arrests over the past year, newly-released government data show. Nineteen terrorist plots have been thwarted in the last four years, including six since the Westminster attack in March.
    The Boomerang Hurricane Jose

    The Boomerang Hurricane Jose

    There is some additional weakening possible in the coming days, and Jose could become to a tropical storm on Tuesday. Jose is expected to continue this general motion and speed over the next 24 hours.
    Odell Beckham traveled to Dallas, may still sit vs. Cowboys

    Odell Beckham traveled to Dallas, may still sit vs. Cowboys

    Offseason pickup Brandon Marshall , a former No. 1 receiver in his own right, will likely see an increased role Sunday night. Last season, during two victories against Dallas a quarterback notorious for turning the ball over threw just two picks.
  • Confident Pakistan aim to wrap up Independence Cup today

    Confident Pakistan aim to wrap up Independence Cup today

    In the first match of Independence Cup, he leaked as many as 51 runs and then scored a mere 17 in a pursuit of colossal total. World XI skipper Faf du Plessis survived a close run-out chance when his counterpart Sarfraz uprooted the stumps in a flash.
    Browns vs. Steelers: A rivalry fueled by the fans

    Browns vs. Steelers: A rivalry fueled by the fans

    The Browns' defense was in the bottom third of the league in run defense and that's where the Steelers will start to hurt them. He is the next in a long (long, long, long) tradition of quarterbacks making their Browns debut in Week 1.
    Appalachian Power sending hundreds to Florida, Georgia

    Appalachian Power sending hundreds to Florida, Georgia

    That surcharge was capped at around $4 per month for the average residential customer, according to NextEra's 2016 annual report. The Nuclear Regulatory Commission said on Friday it has dispatched additional inspectors to the Turkey Point and St.

CONNECT