The US dollar is demonstrating weakness ahead of the Federal Reserve policy meeting. The greenback fell against many other currencies yesterday and remained flat today.
The string of worse-than-expected economic reports from the United States continued on Monday as the Markit Flash US Services PMI fell unexpectedly. The constant stream of disappointing data led to speculations that the Fed will not raise interest rates in June and may even delay an interest rate hike till the next year. The US central bank starts its policy meeting today, and market participants will watch for any hints from the Fed regarding its plans for monetary policy.
Another negative factor for the dollar is the outlook for the US economic growth. Specialists predict that the GDP report released tomorrow will show that US economic expansion slowed from 2.2 percent in the fourth quarter of 2014 to 1 percent in the first quarter of this year.
EUR/USD was at 1.0878 as of 4:00 GMT today after opening at 1.0889. GBP/USD was flat at 1.5230. USD/JPY traded at 119.09 after opening at 119.02.
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