The dollar has approached a three-week high against the yen and it also managed to stand very tall against the Euro as well. This all happened on Wednesday and it was ahead of the Federal Reserve Meeting. This could provide a ton of clues as to how many more rate hikes could be expected and this could also have an effect on the Forex trade industry as well. The FED has concluded their two day meeting on Wednesday and this is expected to have some more price hikes over the next couple of years. The market focus is really on whether or not the FED signals is tightening their policy or not. The world’s largest economy has since expanded on a very steady basis and the dollar index is against six major currencies also went up by 0.03% as well.
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The dollar is known for being 0.1% higher and this is especially the case if you look at the yen. Of course, there are views and opinions that state the emerging markets and their turmoil could really stop the Federal reserve from quickening their current pace in terms of the rate hikes. The dollar would actually benefit from the Federal reserve if they were to hike the rate four times this year. The Euro didn’t change at all but it did happen to slip by 0.35% overnight. In addition to that, the ECB policy meeting is said to dictate how the Euro is going to function over the next few months and there has also been a lot of speculation that the ECB are going to start signalling their own intention. This could end up with a massive bond purchasing program and it could even help to push the Euro against a three-week high as well. The currency has not been able sustain this amount. The pound is functioning at a lower rate right now and it is unable to hold onto the gains. Sterling did go higher on Tuesday and this is after the British Prime Minister saw off a rebellion in parliament. This was done over the amendments for the bill to help the country exit the EU in the next year.