US dollar is pulling back a bit against some of its counterparts as Forex traders consider economic expectations around the world. The movements in currency pairs are mostly small, however, due to a bit of waiting on the FOMC decision later today.
Concerns about the US economy are weighing on the greenback right now. The Federal Open Market Committee is on day two of its two-day meeting, and a policy announcement is expected from Janet Yellen later today.
There is speculation that, once again, the FOMC will find the economic progress of the United States wanting, and that it will put off some its tapering efforts, and announce a long wait for interest rate hikes.
In the meantime, German inflation increased, according to the Federal Statistics Office in Wiesbaden, and the United Kingdom continue to show signs of economic recovery. The expectations are that the UK pound will continue to strengthen as the UK economy improves. As a result, the US dollar is down against many of its counterparts, although some of the movements are slow as Forex traders wait on more data and policy announcements.
At 12:01 GMT DXY is down to 79.64 from the open at 79.81. EUR/USD is up to 1.3849 from the open at 1.3812. GBP/USD has slipped a bit to 1.6826 from the open at 1.6827.
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