Dollar Steady, Conflict Pause Dampens Safe Haven Demand
The US dollar moved relatively steadily in trading on Monday (July 27th) after weakening earlier in the session. The US Dollar Index hovered around 101.40 ahead of the Federal Reserve's policy meeting.
Pressure on the dollar emerged after the United States and Iran temporarily halted attacks. The pause in conflict reduced demand for safe assets and prompted investors to return to more risk-sensitive currencies.
Falling oil prices also eased concerns about energy inflation. The Fed is expected to maintain interest rates in the 3.50%–3.75% range, although the possibility of a hike remains a concern for the market.
EUR/USD held steady around 1.1370 ahead of German and Eurozone economic growth data. Meanwhile, GBP/USD weakened near 1.3300 ahead of the Bank of England's interest rate decision.
USD/JPY fell to around 163.70 as the yen drew support from weaker oil and the dollar. However, the pair remains near its highest level in decades ahead of the Bank of Japan's decision.
AUD/USD strengthened towards 0.6990 as market sentiment improved. The dollar's next direction will be determined by decisions from the Fed, the Bank of England, and the Bank of Japan, as well as Australian inflation data, which could influence the global interest rate outlook. (arl)
Source: Newsmaker.id