US dollar is losing ground today, ahead of a Federal Reserve meeting later this week. Forex traders are consolidating their positions and profit taking as they wait to see what the Fed’s tone indicates for future rate hikes in 2016.
US dollar index is lower today, after heading briefly higher. Lower commodities have provided some support for the US dollar, but right now Forex traders are more interested in consolidating positions and taking a wait and see approach ahead of the upcoming Federal Reserve meeting.
The FOMC is getting ready for a two-day meeting starting tomorrow, and the latest policy clues will be released by Fed Chair Janet Yellen on Wednesday. Forex traders and others are looking for an idea of when interest rates might rise again. Even though economic news in the United States has been generally encouraging, concerns about the global economy, including the impact of the Brexit, are weighing to some degree.
For now, consolidation and profit-taking are the order of the day.
At 12:32 GMT the US dollar index is down to 97.347 from the open at 97.382. EUR/USD is up to 1.0984 from the open at 1.0971. GBP/USD has slipped to 1.3118 from the open at 1.3145. USD/JPY is down to 106.15 from the open at 106.20.
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