The U.S. dollar continues to head for the first monthly gain against its European counterpart this year as the market participants await the FOMC rate decision and a statement that are scheduled for release today.
According to the interest rate futures, Investors believe that the rate in U.S. will be lowered today by 25 basis points (from 2.25% to 2.00%), but the statement wont be dovish this time, signaling for an end or at least a pause in the rate reduction cycle.
The dollar is currently poised for the biggest monthly gain against the euro since February 2006. The euro itself is experiencing a slight decline this month against the other world currencies.
The dollar is also heading for its biggest monthly gain against the Japanese yen since April 2004, as the yen has been losing its position on the currency market heavily this month.
EUR/USD on Forex market opened at 1.5571 rate today and after a little upward spike is trading almost unchanged at 1.5561 (as of 8:30 GMT).
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