The US dollar rose at the start of trading today to erase some of its losses ahead of the Fed meeting, which is widely expected to raise interest rates to 1.75%. So far, the Fed has raised interest rates 5 times since late 2015.
FED has indicated in its recent forecasts to hike interest rates three times in 2018 but raising its expectations during this meeting will boost the gains of the dollar and push it to rise further. The dollar index rose slightly during today's trading to settle at 89.60 levels.
Earlier in the day, the minutes of the Reserve Bank of Australia meeting were announced, confirming the continuation of the current monetary policy to achieve growth and the inflation target, noting that the rise in the Australian dollar could slow growth and lower inflation, currently AUDUSD is trading near its lowest level since late December at 0.7696.
Yesterday, Euro rose significantly following news that policymakers' discussions shifted from ending of the quantitative easing program to discuss about rate hikes, pushing the EURUSD to 1.2360 before retreating again to 1.23.
Also, the British Pound is still maintaining the 1.40 levels which it reached during yesterday's trading following the positive developments in the Brexit and the possibility of signing the transitional period Agreement during the summit to be held this weekend. Also, the pound continued rising at the beginning of the day, following the British inflation data, which recorded a slowdown in February to 2.7%.
