trading lower ahead of interest rate decisions in the hope that the Fed will maintain a patient attitude but positive and negative surprises can easily trigger major changes in the currency. To begin, no one expects the central bank to change interest rates but there will be a press conference with the Fed Chair, Powell, a dot-plot and the latest economic projections. So this will not be one of the meetings where we will only get the FOMC statement and a few words from Powell. On the contrary, these 3 things can significantly influence market appetite for the US dollar
The US dollar moved higher against most of its peers in early European trade on Wednesday, supported overnight by new reports showing a lack of progress in trade talks with China. The most interesting thing is the so-called 'dot-plot' which maps the hopes of FOMC members where interest rates will be above the two-year horizon, and many expect this to show that expectations of further interest rates have fallen since the Fed last meeting. There is also some hope for a clearer statement about when - and at what level - the Fed will stop shrinking its balance sheet.
At 3:00 p.m., the euro was touching a lower against the dollar at $ 1,1351, while the British pound also fell 0.2% at $ 1,3239.
