Graphic Rewind: US Dollar Volatility Shrinks Ahead of Fed Rate Decision
- US Dollar sees little volatility ahead of the FOMC decision
- Aussie gains against the greenback on Stevens comments
A look back at the past 24 hours of Forex trading using movements in the US Dollar Index:
US Dollar 15-Minute 12:00 12/17 to 12:00 12/18 EST
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I’ve written this line over and over for the past few days, and I get to write it again one last time today: economic news failed to bring lasting moves in the Dow Jones FXCM Dollar Index, as traders remained poised for the upcoming Fed taper decision.
Volatility remained tight in the US Dollar Index ahead of the Fed rate announcement. The greenback declined slightly against the Aussie at the start of the Sydney session, on some comments from RBA Governor Stevens. Following small volatility in the London morning, the US Dollar headed back towards the daily high at the start of the NY session. US housing starts significantly beat expectations in November, sending the greenback temporarily higher.
(The Fed’s taper decision was announced shortly after this writing and will be included in tomorrow’s graphic rewind.)
Charts created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.