US dollar is higher today, ahead of the federal reserve announcement later. Economic data in the United States continues to be solid. That is giving some analysts reason to believe the Federal Reserve will hike rates sometime in 2016. However, that day is probably not today.
Greenback is higher pretty much across the board today against its major counterparts. This comes as the Federal Reserve is set to end a two day decision-making meeting. There are economists who think that the Fed should raise rates soon, but many expect the policymakers will wait until June.
US dollar is getting a bump anyway as many Forex traders expect continued strength from the currency. Concerns about the euro zone are on the rise again and the Bank of England it doesn’t seem likely to raise rates anytime soon. This means that policy divergence will favor the greenback and grant it strength for a little while longer.
At 13:40 GMT the US dollar index is moving higher, gaining to 96.971 from the open at 96.649. EUR/USD is lower, dropping down to 1.1072 from the open at 1.1109. GBP/USD is also lower, moving down to 1.4071 from the open at 1.4151. USD/JPY is moving higher, Gaining ground to 113.6760 from the open at 113.1640.
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