Currencies and commodities have stabilized during the Asian session, with the widely expectations that Federal Reserve will raise interest rates this month.
The US dollar steadied during morning tradings amid growing expectations that the Fed will raise benchmark interest rates next week, while we see that the uncertainty about the presidential election in France, returned to cast a shadow over the euro.
At 8:00 GMT, the US dollar index (USDIX) fell 0.06% at 101.6.
The US dollar kept gains on Tuesday, supported by expectations that Fed almost certain to raise interest rate at the next meeting on 14 and 15 of March, as these expectations are based primarily on statements of Fed Chair Janet Yellen on Friday raising interest rates would be appropriate this month, if the employment and inflation data remained up.
It will be difficult to see more rally on the US dollar if the President Donald Trump does not announce the details of economic policy, as investors see that it is difficult for Trump legislation tax cuts and infrastructure spending.
So it is unlikely to see US dollar achieving further gains, and at the same time the US dollar continues to receive support from the expectations of rise interest rates, so the outlook would be with narrow range in the short term.
The US agenda today contains the trade balance for February, and market participants believe that the deficit will expand to 47.0 billion dollars from 44.3 billion US dollars, the impact of this statement on the US dollar medium which will affect the currency in the event was worse or much better than expected.
Japanese yen little changed since the morning after the rally that dominated the currency on Monday amid geopolitical tensions, which prompted investors to buy the yen as a safe haven.
The US dollar fell 0.1% against the Japanese yen to 113.93 levels.
Investors will see a final reading of GDP during the fourth quarter, and the expectations is a positive to reflect the expansion in growth at 0.4% from 0.2%.
euro Swirling against the US dollar at 1.0579 levels down from the high achieved Monday at 1,064, after presidential candidate Francois Fillon won his party's backing, hours after the former Prime Minister Alain Juppe ruled out of an election bid.
Party leaders swung behind Fillon, despite the allegations of misuse of public funds.the unions also failed to persuade him to step down voluntarily, but the problem enables the difficulty to agree on an alternative candidate, and this in turn increases the negative pressure on the euro.
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