Dollar Rides a 5-Day Winning Streak Ahead of Pivotal Fed Meeting
London: 20 March 2024 (TraderMade): The US dollar is riding a five-day winning streak as investors nervously await the Federal Reserve's crucial policy decision later today. This meeting could significantly impact the future of interest rates and the global financial landscape.
Dollar Rides Market Expectations for Slower Rate Cuts
The dollar's recent surge reflects market expectations for a less aggressive rate-cutting path from the Fed. This shift in sentiment comes on the heels of Japan's central bank finally ditching negative interest rates, a move that surprisingly weakened the yen instead of strengthening it.
- EURUSD declined 0.21% to 1.08431.
- GBPUSD plummeted 0.23% to 1.26929.
- USDJPY surged 0.61% to 151.75049.
- AUDUSD slipped 0.21% to 0.6519.
- The Dollar Index (USDX) trades steady at 103.7575.
All Eyes on the Fed's Dot Plot
All eyes are on Fed Chair Jerome Powell, who will unveil the Fed's economic projections, including the highly anticipated "dot plot." This chart reveals where individual Fed members see interest rates heading and whether the Fed plans two or three rate cuts this year, as markets have been speculating.
Stay Tuned for Updates
Stay tuned for further updates on the Fed's decision and its impact on the dollar and broader financial markets.
