Forex – U.S. Dollar Rises as Trump Goes After Fed

Investing.com – The U.S. dollar rose on Wednesday as U.S. President Donald Trump continued to keep up his criticism on the Federal Reserve.

 

Long-term bond yields remained before those of short-term notes, increasing worry about a potential recession. The inversion of the Treasury yield curve is widely considered a precursor to an economic slowdown, although it is historically not an infallible signal.

Still, Trump accused the Fed of not being able to “keep up with the competition,” as he reiterated his stance that the central bank should lower rates.

 

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.2% to 98.083 as of 11:14 AM ET (15:14 GMT).

The Japanese yen, which is seen as a safe-haven in times of market turmoil, fell with USD/JPY rising 0.2% to 105.86.

Elsewhere, GBP/USD plummeted 0.5% to 1.2222 after the Queen of England agreed to suspend Parliament until Oct. 14, effectively sealing in a no-deal Brexit. The U.K. is expected to leave the European Union on Oct. 31.

EUR/USD was down 0.1% to 1.1079.