Later this week, the Fed will meet to talk about interest rate policy. Forex traders are positioning themselves ahead of the meeting, and the greenback is losing ground as a result. A stronger dollar might be in the offing, however, as expectations for a rate increase during September increase.
The US dollar is heading lower today as traders consider the future, and prepare for the Federal Reserve policy meeting later this week. Forex traders will be looking for the results out of the Federal Open Market Committee, and looking for clues about what’s next for interest rates. Many expect that the Fed will begin raising rates in September.
For now, though, there is also attention on a sell-off in China and some interest in economic data out of the eurozone. Forex traders are positioning themselves, and getting ready for what might be next for the greenback.
At 12:53 GMT the US dollar index is lower, dropping to 96.65 from the open at 97.25. EUR/USD is higher, gaining to 1.1073 from the open at 1.0983. GBP/USD is also gaining ground, heading up to 1.5528 from the open at 1.5515. USD/JPY is lower, dropping to 123.1640 from the open at 123.7410. USD/CAD is also lower, moving down to 1.3035 from the open at 1.3043.
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