Of all the Fed meetings we have seen under the Trump administration, today’s may be the most significant. As the global economy prepares for the news, Reuters prepared a comprehensive report on how the world is reacting.
In the States “the Fed is expected to signal whether it will raise rates for the third time this year and to say it will start to cut its holdings of about $4.2 trillion in bonds and mortgage-backed securities next month. It will issue new economic forecasts and Fed Chair Janet Yellen holds a news conference.”
The dollar fell less than 0.1 percent against a basket of major currencies .DXY and was down against the euro, the yen and sterling.
A potential rate hike will have a strong ripple effect across the world’s currency markets. In Europe “if we move closer to a U.S. rate hike, that should come along with a bit more dollar strength and euro weakness which would harden the ECB’s exit case and be a headwind for government bonds,” said Commerzbank strategist Rainer Guntermann. Via reuters.com.
Be sure to keep an eye out today for the changes in the currency market and don’t forget to sign up for our free currency newsletter.
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