US Dollar Pulls Back as Traders Await Fed Announcement

US dollar is pulling back today, heading a little bit lower as Forex traders wait for the Federal Reserve’s announcement about what’s next for the greenback.

Policymakers at the Federal Reserve are entering the second day of a two-day meeting to discuss interest rates and plans for monetary policy. An announcement is expected this afternoon, and the greenback is a little lower as Forex traders consolidate their positions and wait for what’s next.
Some analysts and traders expect Federal Reserve Chair Janet Yellen to hint at when a change to the Fed Fund Rate will be made. Many expect that interest rates will start rising again in September, although there is some small speculation that today’s announcement could include a surprise. After all, the US economy continues to improve (albeit at a slow pace) and the jobs situation is much better now than it was when the Fed was cutting rates so dramatically in the wake of the financial crisis.
At 12:51 GMT the US dollar index is lower, dropping to 94.81 from the open at 94.98. EUR/USD is higher, gaining to 1.1272 from the open at 1.1248. GBP/USD is also higher, moving up to 1.5737 from the open at 1.5648. USD/JPY is higher, though, moving up to 124.0000 from the open at 123.3670.

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