US Dollar Higher as Fed Meet Moves into Focus

USD

The trading week kicked off today with strong gains for the US dollar, as investors remained focused on the Federal Reserve’s upcoming policy meeting later this week.

Having endured some strong volatility towards the back end of last week, primarily due to the knee-jerk reaction and subsequent digesting of the stronger than expected stimulus measures announced by the ECB on Thursday, it was more of the same today. Despite lower than average volume being traded in the markets today, the US dollar still found support amongst the investors who chose not to stay on the sidelines until the conclusion of this week’s Fed Reserve monetary policy meeting.

The US Dollar rose a near half percent against the Euro, with the EUR/USD declining 0.46%. Against its Japanese counterpart, the US dollar remained unchanged, oscillating between small losses and gains as a strong set of core machinery orders data from Japan provided support for the Yen. Cable did not fare so well, with the British Pound dropping 0.56% against the greenback as a lack of economic data from the UK today ensured Sterling received little or no support.

Plummeting oil prices meant the Canadian Dollar also declined against its US counterpart. The oil-linked currency dropped 0.38% as prices of crude oil plunged more than 3% as OPEC members failed to agree a cut in production levels.

The US dollar is expected to have a busy and volatile week with the Fed meeting taking centre stage. However, there are some key data releases from the US throughout the week, which should keep currency traders on their toes.

 

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Ben Myers

After graduating with a degree in Finance and Accounting, Ben has had a long and distinguished career in the world of global finance and investment. After working with multi-national institutions including HSBC and Bank of Ireland, Ben ran his own independent investment advice firm in the UK before chief analyst stints at a number of forex/binary options companies. Ben is currently CEO of www.mediamile.com and remains a keen trader and a featured contributor at investing.com and dailyforex.

About the Author

Ben Myers
After graduating with a degree in Finance and Accounting, Ben has had a long and distinguished career in the world of global finance and investment. After working with multi-national institutions including HSBC and Bank of Ireland, Ben ran his own independent investment advice firm in the UK before chief analyst stints at a number of forex/binary options companies. Ben is currently CEO of www.mediamile.com and remains a keen trader and a featured contributor at investing.com and dailyforex.