2023-09-18 13:16:00
© Archyde.com. The dollar is slightly away from the 6-month peak before the Fed meeting
FXNEWSTODAY – The US dollar fell in the European market on Monday once morest a basket of global currencies, continuing its losses for the second day in a row, moving slightly away from the highest level in six months, with corrections and profit-taking continuing.
This decline comes before the start of events tomorrow, Tuesday, when it is widely likely to temporarily stop raising prices, with the aim of further evaluating economic developments in the United States.
American
The dollar index fell by more than 0.1% to the level of 105.16 points, from the opening level of today’s trading at 105.29 points, and recorded the highest level at 105.35 points.
The index ended Friday’s trading with a decline of less than 0.1%, its first loss in the last four days, following recording the highest level in six months at 105.43 points the previous day.
The US dollar index achieved a 0.3% rise last week, the ninth weekly gain in a row, as part of the longest series of weekly gains since July 2014, thanks to currency purchases as the best available investment.
Federal Reserve
The Federal Reserve’s monetary policy meeting will begin tomorrow, Tuesday, with decisions to be issued on Wednesday. Expectations indicate that interest rates will be maintained at the 5.50% range, the highest level in 22 years, without any significant change.
Monetary policy statements, quarterly economic forecasts, and statements by Federal Reserve Chairman Jerome Powell are expected to provide strong and clear evidence regarding the future path of monetary policy in the United States, and regarding the existence of an additional increase in interest rates before the end of this year.
So that more aggressive comments and higher expectations for inflation and interest growth, will strongly enhance the possibilities of raising US interest rates by regarding 25 basis points during the next November meeting.
American interest
Futures pricing for the possibility of a 25 basis point hike in US interest rates during this week’s meeting is stable at 1%, and futures pricing for the possibility of keeping interest rates unchanged at 99%.
Futures pricing for the possibility of raising US interest rates at a pace of 25 basis points during the November 1 meeting is at 28%, and futures pricing for the possibility of keeping interest rates unchanged is at 72%.
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