US Dollar Slightly Lower Ahead of Fed Meeting

Greenback is slightly lower today, giving up some of its recent gains as Forex traders consolidate their positions. Many analysts and traders are looking forward to the Federal Reserve meeting later this week, trying to gauge what the next move will be.

Most of the focus the first part of this week will be on the two-day Federal Reserve meeting. Many wonder if the Fed will use rhetoric to test the market to see when the next rate hike could be. Few expect policymakers to actually raise rates at this meeting.
Instead, many are waiting for Janet Yellen’s statement about the economy and the decision to try and determine whether the next rate hike will come in June, or whether it will wait until later in the year.
For now, many Forex traders are consolidating their positions and taking recent profits. The are positioning themselves for what’s next and waiting to see what policymakers have to say before making any big moves.
At 13:42 GMT the US dollar index is down to 94.883 from the open at 95.098. EUR/USD is higher, gaining to 1.1253 from the open at 1.1219. GBP/USD is also higher, moving up to 1.4489 from the open at 1.4466. USD/JPY is moving lower today, dropping down to 111.1300 from the open at 111.8580.

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