Dollar is under pressure ahead of Fed meeting |
The US dollar remains under pressure ahead of the announcements of the Fed's two-day meeting results, where expectations refer to pumping $500 billion over the coming six months to energize the economy.
Economists see that the Fed will start with $500 billion while the whole package may reach $1 trillion or $2 trillion.
The dollar index, which tracks the dollar movements versus a basket of major currencies, slipped to a low of 76.64 compared with the day's opening price at 77.23.
The greenback dropped to its lowest level since 1983 against the Aussie after the Australian central bank unexpectedly hiked interest rate by 25 basis points to 4.75%, taking the pair to parity.
On the other hand, the progress seen in European manufacturing, trailing Chinese and U.S. advance yesterday, boosted hopes and gave support to the euro and pushed the yen lower.
Concerning the euro-dollar pair, it rebounded from 1.3890 levels where the support gave a boost to the pair which managed to breach resistance at 1.40.
The European common currency bounced after today's report which showed that the manufacturing sector expanded to 54.6 in October compared with 53.7 in September.
Meanwhile, the pair is trading at 1.4025 after recording a high of 1.4050 and a low of 1.3879, whereas the trading range for today is among the major support at 1.3800 and the major resistance at 1.4250.
Moving to the royal pair, it retreated from a high of 1.6075 after a report showing that UK construction slowed in October, yet it remains above physiological level of 1.60.
The pair is currently trading at 1.6015, while the trading range for today is among the major support at 1.5920 and the major resistance at 1.6200.
With regard to the dollar-yen pair, it rose slightly for the second day reaching a high of 80.96 but it fell from there to 80.70 while the day's low is at 80.44.
The yen is facing pressure on speculation the Bank of Japan will announce further measures to keep borrowing costs low to prevent recovery from faltering.
The trading range for today is among the key support at 78.60 and the key resistance at 81.15.
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