Forex traders are looking for a little direction today, and, as a result, the US dollar is mixed. Greenback is higher against the euro, thanks to fresh concerns about the Greek debt situation, but lower against the Great Britain pound. With Fed heading into a two-day meeting, many are waiting to see what policy announcements will be made.
The members of the Federal Open Market Committee of the Federal Reserve are meeting today to figure out what they think the future holds for the US economy — and for the larger global economy. They will be trying to decide how to word policy announcements so that they don’t increase market volatility.
Many traders and investors are most interested in learning when the Federal Reserve hopes to increase interest rates again. Interest rates have been low for several years now, and many are interested in whether or not the Fed will hike rates at the end of this year, in 2013, or wait until 2014. If the Fed shares this information, it will have a huge impact on the Forex market.
For now, US dollar remains mixed. Euro is trying to make up some ground on its PMI data, and is breaking above 1.30, but a sustained rally has not yet been seen.
At 16:26 GMT EUR/USD is slight lower at 1.3005, down from the open at 1.3018. GBP/USD is up to 1.5610 from the open at 1.5568. USD/JPY is higher at 77.70150, up from the open at 77.0195.
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