US Dollar Mixed; Dollar Index Lower

The US dollar index is lower today, while the US dollar trades mixed against its major counterparts. In a lot of ways, the dollar is “wait and see” mode as Forex traders and others await the latest Federal Reserve decision and statement.

While no one expects the Federal Reserve to announce a rate hike immediately, there is still a lot of curiosity about the announcement expected later today. As a result of speculation, the US dollar has been consolidating a bit, losing ground against some of its counterparts. The US dollar index is lower today.

Many expect that the Fed will begin raising rates this year, but when is likely to hinge on economic data, particularly information about the jobs market. On top of that, there has been some profit taking as traders reposition themselves in anticipation of the Fed statement.

At 11:06 GMT the US dollar index is lower, moving to 99.4720 from the open at 99.6100. Much of the downward movement for the dollar index is due to the euro, which is gaining on the dollar and the currency with the heaviest weight in the dollar index basket. EUR/USD is up to 1.0625 from the open at 1.0597. Even with these gains, the euro is still relatively weak, though. GBP/USD is down to 1.4673 from the open at 1.4749. USD/JPY is down to 121.1610 from the open at 121.3650.

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