Forex – Dollar Off Lows, Fed Meeting Gets Underway

© Reuters. – The dollar bounced off the lows of session Tuesday against a basket of major currencies as the Federal Reserve got its two-day meeting underway.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.17% to 89.02

The Federal Reserve got its two-day meeting underway, with an announcement on its monetary policy decision due Wednesday, when it’s widely expected the central bank will stand pat on interest rates.

Yet the monetary policy statement, which accompanies the rate decision, is expected to garner attention as some market participants expect the Fed to adopt a slightly hawkish slant in its language concerning the strength of the US economy and inflation.

Bullish economic data, meanwhile, limited losses in the greenback as data showed consumers remained confident the strong economic growth seen last year will continue into 2018.

The rose to 125.4 in January from 122.1 in December, beating economists’ forecast for a reading of 123.1.

“Consumers remain quite confident that the solid pace of growth seen in late 2017 will continue into 2018,” said Lynn Franco, director of economic indicators at the board. “Expectations improved, though consumers were somewhat ambivalent about their income prospects over the coming months, perhaps the result of some uncertainty regarding the impact of the tax plan.”

gained 0.19% to $1.2405 a day ahead of Eurozone inflation data expected to show consumer price growth continues to lag the European Central Bank’s target of about 2%.

rose 0.49% to $1.4143, while fell 0.11% to Y108.82

fell 0.09% to $1.2329 as a slump in oil prices has continued to weigh on the loonie.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.