Forex – GBP/USD Surge Above $1.40 Weighs on Dollar Ahead of FOMC – The dollar fell against a basket of major currencies weighed by a sharp rise in sterling as the UK and EU reportedly reached an agreement on a post-Brexit transition period and the Irish Border.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.38% to 89.46.

Ahead of the Federal Reserve Open Market Committee (FOMC) meeting, the dollar struggled to advance despite expectations FOMC members on Wednesday will vote to raise rates for the first time this year and could add a fourth rate hike projection to the current projections three rate hikes expected this year amid a hawkish tweak in the FOMC language in January.

The FOMC statement noted that “market based measures of inflation compensation have increased in recent months but remain low,” a tweak from December’s language which simply said that the measures “remain low.”

According to’s fed rate monitor expect the fed to hike rates on Wednesday.

The fall in dollar comes as rose 0.65% to $1.4032 after the UK and EU were said to have agreed on a large part of a , which raised optimism over a smoother exit for the UK from EU.

Also weighing on the greenback was a rise in rose 0.35% to $1.2333 amid a Reuters report suggesting that a few dovish rate-setting European Central Bank members have .

fell 0.16% to Y105.84, while fell 0.05% to C$1.3089, the latter fell as the loonie strengthened following signs of progress on .

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.