Dollar Consolidating Ahead of FOMC

The US dollar is consolidating right now, moving slightly lower ahead of today’s expected Federal Reserve announcement.

For the most part, Forex traders are in wait and see mode, waiting to see what Fed Chair Janet Yellen has to say about US monetary policy. Many traders are interested to learn whether or not she will provide any new hints about when interest rates might rise.
The US economy has been improving slowly over the last few years, and policymakers have been scaling back some of the quantitative easing issues. However, concerns about China, and uncertainty about geopolitical issues could very well prompt policymakers not to take steps that are too drastic as they move forward.
How the US dollar performs relative to other currencies is likely to be impacted by Yellen’s comments today, along with the influence of other factors, including Scotland’s upcoming independence vote, the situation in the Middle East, and sanctions against Russia.
At 10:47 GMT the US dollar index is a little bit lower, moving down to 84.0530 from the open at 84.0950. EUR/USD is only slightly higher, moving up to 1.2962 from the open at 1.2960. GBP/USD is higher as well, heading up to 1.6306 from the open at 1.6277. USD/JPY is up to 107.3195 from the open at 107.1275.

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