http://s.marketwatch.com/public/resources/MWimages/MW-EY056_dollar_ZG_20161017211422.jpg

A Lot on the Line for Weakening Dollar With Today’s Fed Meeting

September 20, 2017
103 Shares 2,212 Views

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.

[grwebform url=”https://app.getresponse.com/view_webform_v2.js?u=BKTzq&webforms_id=14542602″ css=”on” center=”off” center_margin=”200″/]

 

You may be interested

Job Hiring is Picking Up as Employers and Consumers Gain Confidence
Economy
549 views
Economy
549 views

Job Hiring is Picking Up as Employers and Consumers Gain Confidence

Lamont J - March 29, 2021

The recent government stimulus for small and medium-sized businesses, personal stimulus checks, and declining Coronavirus cases, are all great news…

Fed Could Maintain 0% Interest Rate Until 2024
Economy
489 views
Economy
489 views

Fed Could Maintain 0% Interest Rate Until 2024

Adam R - March 26, 2021

The Federal Reserve is holding its target interest rate in a range of 0.00% - 0.25%, even while the economy…

Supply Constraints Could Slow the Home Market
Economy
555 views
Economy
555 views

Supply Constraints Could Slow the Home Market

Becky H - March 25, 2021

Low inventory has been a constant in the home market for more than a year. The supply of existing and…