The US dollar traded with small losses on Monday ahead of the two-day policy meeting scheduled by the Federal Reserve this week. Speculations about possible actions of the US central bank remain an important factor for determining moves of the greenback.
The vast majority of market participants are sure that the Fed will not announce a change to its monetary policy on Wednesday after ending the meeting. Yet while previously traders were not bothered by that, buying the dollar nevertheless, now they feel less inclined to stockpile the US currency. They prefer to invest into equities and other relatively risky assets instead.
Of course, just because the Fed is not going to do anything yet, it does not mean that traders should ignore the event. If Fed’s statement turns out to be very hawkish, it may cause almost the same effect as an actual rate hike.
EUR/USD rose a little from 1.1151 to 1.1178 as of 23:11 GMT today, touching the high of 1.1197 intraday. GBP/USD ticked up from 1.2999 to 1.3036 while its daily high was at 1.3090. USD/JPY slipped from 102.11 to 101.79.
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