Dollar moves higher while investors await Fed

Dollar trades lower

On Wednesday, the Dollar rose higher while investors awaited the result of the U.S. Federal Reserve’s two day policy meeting later in the session for hints about future tightening.

The dollar index, which is tracking the greenback versus a collection of six other major currencies, gained 0.1 percent to 94.598 .DXY, though it stayed shy of Friday’s three month high of 95.150.

The U.S. central bank is assumed to leave interest rates unaltered. However, investors will be monitoring for any new signs that the Fed will continue increasing rates next month.

Republican lawmakers could also begin a bill to reduce taxes and the Treasury Department will issue its refunding plans. The government is assumed to raise the size of its regular auctions for the reason that it’s experiencing higher funding needs from an expanding deficit and as the Fed cuts its balance sheet.

The dollar rose 0.1 percent to 113.75 JPY=, within range of its three month high of 114.45 yen on Friday.

Last month, consumer confidence rose to an approximately 17 year high. With households excited about the labor market and business conditions. Other data stated wage increase accelerated in the third quarter.

Ahead of President Trump’s trip to Asia, he is expected to announce his choice for the new Fed chair this coming Thursday, with reports favoring Fed Governor Jerome Powell as possibly to be nominated to take over when present Fed Chair Janet Yellen’s term ends in February.

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