Dollar Drops as Fed Starts Policy Meeting

The US dollar dipped today on speculations that the Federal Reserve will not reduce stimulus as the recent fundamental data was not good enough to warrant tighter policy.

The Fed started its two-day meeting today. Analysts do not expect the US central bank to change its monetary policy, but wording of the decision may influence the Forex market strongly.

US economic reports were not good enough to believe that policy makers will be able to reduce monetary easing. The Chicago Purchasing Managers’ Index dropped from 52.4 in March to 49.0 in April. Experts have predicted to remain stable.

EUR/USD went up from 1.3096 to 1.3168 and GBP/USD rose from 1.5498 to 1.5531 as of 23:26 GMT today. USD/JPY slipped from 97.72 to 97.39.

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