The US dollar stabilised to a certain extent after two months of gains as traders brace for the Federal Reserve’s meeting later today.
While the Federal Reserve is expected to leave interest rates unchanged today, Jerome Powell’s comments and in particular the Fed’s dot plot and economic projections could fuel some volatility as traders look for hints regarding the future steps in US monetary policy.
Interest rates in the US could remain at elevated levels for some time and could support the dollar against other currencies.
The dollar could continue to see strength against the euro which saw the European Central Bank adopt a softer tone after its latest interest rate hike.
Traders will also focus on the Bank of England and the Swiss National Bank tomorrow and the Bank of Japan on Friday.