USD falling against major currencies as the markets await important events

With the start of Fed meetings, the USD fell on Tuesday, shortly after seeing some gains on Monday. The greenback fell against a range of major currencies, such as the euro and the Japanese yen. Markets and traders are waiting for the announcement of the results of the board meeting, scheduled tomorrow.

The dollar is on track to its biggest monthly decline since March 2016, falling by 3.4%, after six weeks of continuous declines. Traders are also waiting for a range of important economic events, such as the Federal Reserve’s meeting on Wednesday and the US Non-Farm Payrolls report on Friday. As some analysts say, markets and traders are not doing much now, and are eagerly waiting for the Fed’s decision tomorrow.

The dollar saw some gains on Monday, after rising global bond yields and US Treasury yields. This encouraged some investors to reduce some of their short positions, and thus resulted in a spike in the USD’s price. However, the greenback fell 0.17% against a range of major rivals, to reach 89.154 points, but still remains higher than last week’s 88.43 – the currency’s lowest since December 2014. The euro rose against the dollar, with the USD down 0.23% and the EUR / USD pair trading at $1.2409, which is still better than last week’s price of $1.2536, its highest in 3 years.

The British pound also rose against the US dollar, and the pair was trading at $1.4125, shortly after the pound fell briefly against the dollar below the $1.40 barrier. The Japanese Yen also rose against the US dollar by 0.19% and the USD / JPY traded at 108.76 Yen per USD.

On Tuesday evening, the US President will hold a speech. Trump announced yesterday that he is planning to present his proposed reforms on immigration, as well as his efforts to lower trade barriers worldwide for US exports. However, some analysts say that markets will not move much, despite the speech. US Treasury Secretary Stephen Mnuchin gave the greenback a big push in his remarks last week, but came with an implicit acknowledgment of the dollar’s weakness. Trump then tried to back away from those statements, saying he ultimately wanted the dollar to be strong.