Greenback is climbing ahead of Fed policy meeting, adding pressure to the gold, which depreciates strongly over the last days. WTI soared at 4-month high, while euro gained significant ground following Eurozone’s CPI report.
U.S. Dollar is Getting Stronger Ahead of FOMC Meeting
We just entered a Fed week and the U.S. dollar rose against most of the majors. The Federal Reserve committee starts its two-day meeting today. All market participants looking forward to the end of this meeting tomorrow, which will bring the FOMC projections and the interest rate decision. It is widely expected the central bank to keep interest rates unchanged at 1.25%. The CME FedWatch tool shows zero probability to announce a rate hike tomorrow despite the surprisingly strong inflation rate announced last week, above market expectations.
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