Asian session review: the US dollar declined slightly against most currencies

During today's Asian trading, the US dollar fell against the euro and was almost unchanged against the yen ahead of the start of the two-day meeting of the US Federal Reserve (Fed).

The ICE index, which tracks the dollar's performance against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), fell 0.08%.

The meeting of the Federal Reserve will be held on June 15-16. Following the results of the meeting of the management of the Fed, in addition to the traditional statement on the rate and volume of asset repurchases, economic forecasts will be published, as well as expectations regarding the further dynamics of interest rates. Experts believe that the Fed will not give signals about plans to gradually reduce the volume of bond purchases earlier than in August-September of this year.

At the same time, the dot plot, a chart that reflects the individual expectations of the members of the Fed's board of governors and the heads of the Federal Reserve banks regarding interest rates, can show that all 18 Fed managers expect at least one rate increase in 2023, predicts more than half of Bloomberg respondents.

ING analysts believe that the euro may rise to $1.25 by the end of the summer, if the real yield on US government bonds remains significantly below zero, and the macroeconomic data in the euro zone is optimistic.

The pound consolidated against the US dollar. British Prime Minister Boris Johnson yesterday announced the extension of quarantine measures in England for another 4 weeks, pushing the deadline for their removal from June 21 to July 19, in order to reach a larger number of residents with COVID-19 vaccination.