The yen wins because the dollar faces the expectations of an accommodating Fed

LONDON (Reuters) – The Japanese yen advanced on Tuesday, benefiting from a US dollar hit by worries over the US economy and expectations that the US Federal Reserve will be accommodating in the US. a meeting this week.

The euro also benefited from the weakening of the dollar, adding 0.2% to 1.1328 USD = EBS.

Markets expect the Fed to adopt a conciliatory tone when it meets this week, and bets on lower interest rates have risen after weaker-than-expected manufacturing data on Friday.

The US currency, measured against a basket of rivals, has weakened by 1.3% over the last 10 days. Tuesday, he fell 0.2% to 96.415 .DXY.

The Australian dollar has benefited the most from the decline of the US dollar. The New Zealand dollar = D3 and the Canadian dollar CAD = D3 also performed well.

"Assuming Washington is not more aggressive with trade in the near future, expect this more favorable environment to continue and allow local stories to win …" ING badysts.

Currency market volatility is at its lowest level in five years and badysts believe that recent decisions by the Fed and other major central banks are contributing to this.

Sterling GBP = D3 also rose, rising almost a fifth of a percent to $ 1.3280. It had fallen overnight after the speaker of the British Parliament overruled Prime Minister Theresa May's plans for Brexit by deciding that she had to change her agreement, which had been beaten twice, before the propose for a third vote.

The Bank of England is expected to leave its interest rate outlook unchanged at a policy meeting on Thursday due to uncertainty surrounding Britain's decision to leave the company. 39, European Union.

Tuesday's focus was also on Germany's ZEW economic index for March, which was expected to be around 1,000 GMT.

The German economy, the largest in Europe, barely escaped the recession in the fourth quarter, as global trade disputes and Brexit stalled a decade of expansion.