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Title: Dollar holds tight as investors look beyond Fed to next big cenbank meetings







Dec 16, 2021 12:41AM ET


By: AnalysisWatch


The dollar edged higher on Thursday, yet exchanging was rough as financial backers anticipated money-related strategy choices from the UK and the eurozone, simply a day later the US Federal Reserve made its own hawkish U-turn.


The dollar climbed marginally against the yen for a fourth consecutive exchanging day to as high as $114.24, while the Australian dollar slipped to as low as $0.7146 in spite of solid positions information later the national bank boss said he figured it impossible that loan fees would be brought up in 2022.


Trading was otherwise subdued as investors awaited the Bank of England at 1200 GMT (pricing suggests a small rate hike is unlikely but not impossible) and the European Central Bank at 1245 GMT, with a change in interest rates a distant prospect.


Market expectations on whether the BOE will raise rates are swinging back and forth as the central bank tries to both contain inflation and address concerns about the economy in the face of the fast-spreading Omicron coronavirus variant.


The news and Fed Chairman Jerome Powell's question and answer session sent the dollar on a full circle through US hours on Wednesday. The dollar file, which estimates the money against six different monetary forms, ascended as high as 96.914 prior to falling as low as 96.296.


The decline suggests, in my view, which markets were bracing for a more hawkish stance from the Fed than survey expectations suggested, "Said Ray Atrill, head of foreign exchange strategy at NAB.

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