US Dollar Index Moves Higher, But Remains Rangebound

US dollar index is moving higher, but it remains rangebound today ahead of tomorrow’s Federal Reserve announcement. After dipping lower in earlier trading, the dollar index is gaining ground, and the US dollar has regained the upper hand against the euro.

Even though the economic data coming out of the United States is a little disappointing, the dollar index is still heading a bit higher today. Indeed, after falling earlier, and after the US dollar dropped against the euro, the greenback is back on top.

Consumer confidence is showing a retreat in October, and orders for US durable goods is once again disappointing. Part of the issue regarding durable goods is likely the relative strength of the dollar. US goods are more expensive due to the greenback’s recent strength.

However, even with this news, most Forex traders are waiting to see what the Janet Yellen and the Federal Reserve have for us tomorrow. Trading is mostly rangebound for the greenback as the decision is awaited.

At 14:17 GMT the US dollar index is up to 96.871 from the open at 96.794. EUR/USD has moved lower, down to 1.1035 from the open at 1.1057. GBP/USD is down to 1.5294 from the open at 1.5354. USD/JPY is down to 120.31 from the open at 121.09.

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