The U.S. Dollar is inching lower early Thursday in a low volume, tight-trading range session. Helping to cap gains and pressure prices this week is improving risk sentiment, which zapped the greenback of recent upside momentum built from expectations the Federal Reserve would tighten monetary policy.
At 04:10 GMT, December U.S. Dollar Index futures are trading 93.500, down 0.035 or -0.04%.
Traders have fully-priced the start of a Fed tapering in November and have moved up the date of the first Fed rate hike to July 2022, but apparently that isn’t fast enough, causing investors to increase bets on more aggressive action by other major central banks.
That includes the Bank of England (BoE). The British Pound is rising against the U.S. Dollar on firming perceptions the BoE will raise interest rates as soon as next month to curb inflation, despite softer-than-expected U.K. price data on Wednesday.
The consensus shows that traders are betting on a November…