US dollar is mostly weaker as improved sentiment helps boost other currencies today. Concerns about the global economy, and about Europe, are fading a little bit, and that is helping other currencies against the US dollar. Greenback is not needed as a safe haven, and that is resulting in gains for a few other currencies.
An interest rate decision is expected from the Federal Reserve today. Many expect that the benchmark Fed Funds rate will remain steadily near zero. However, what Forex traders will really be considering is the policy statement from Fed chair Ben Bernanke. Many expect that Bernanke will continue to talk about the softer global economy, but that he will also present a more hawkish stance on raising interest rates.
While many expect that US interest rates will remain low for quite some time in the future, many expect that the Fed will raise rates before the end of 2013. Many will be listening to Bernanke’s policy statements to get an idea of what’s coming, and figure out what can be expected going forward. Many expect, though, to hear news that is likely to put downward pressure on the US dollar.
At 13:06 GMT EUR/USD is up to 1.3211 from the open at 1.3197. GBP/USD is down to 1.6118 from the open at 1.6145. USD/JPY is down to 81.2925 from the open at 81.3145. USD/CAD is down to 0.9850 from the open at 0.9870.
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