020 7898 0500The US dollar enjoyed another positive day yesterday, as speculation continued to mount ahead of tonight’s monetary policy decision. The US currency rose for a fifth day in a row against sterling to hit six week highs, whilst also reaching a near five year high against the Japanese yen. Recent good data from the US has increased speculation the Federal Reserve’s quantitative easing program could be reduced at this evenings meeting, and as such helped see some strength return to the dollar. However, this is by no means a forgone conclusion and only around a 1/3rd of economists surveyed yesterday felt the central bank would taper at this evenings meeting and even then, the opinions vary as to how much they believe the Federal Reverse will reduce its bond purchase by. Moreover, the comments that are released alongside the announcement could well have a great bearing on US dollar prices if they give a clear indication as to when we could see an interest rate hike. As you can see, there is a great deal of uncertainty surrounding this evenings meeting which could push the dollar in either direction. Before this, however, building permits data from the US is due, and could give one final piece of encouragement to investors before the announcement this evening. Call your trader now for the latest US dollar rates, as the Federal Reserve takes centre stage.
