Fed Concludes Meeting as Dollar Remains Lower Versus Euro

The dollar remained lower after a two-day decline versus the euro with the Federal Reserve expected to announce today an expansion to asset purchases that tend to weaken the U.S. currency.

The greenback slid yesterday versus most of its 16 major counterparts amid expectations the Fed will add Treasury purchases to an existing program that buys $40 billion in mortgage bonds each month. The euro was supported ahead of a meeting of European Union finance ministers today and a summit of leaders from the 27 nations in the bloc beginning tomorrow. Figures yesterday showed German investor confidence reached a seven-month high, while Greece met its bond buyback target.

“The bias is for the dollar to be sold because the Fed seems to have no intention to relax its easing stance,” said Kengo Suzuki, a currency strategist in Tokyo at Mizuho Securities Co., a unit of Japan’s third-largest bank by market value.

via Bloomberg

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Stuart McPhee

Stuart McPhee

Senior Currency Technical Analyst at Market Pulse
Stuart McPhee has more than 16 years’ experience as a private trader and he specializes in technical market analysis of major currency pairs. He is the author of several bestselling trading books, most recently the fourth edition of his popular book “Trading in a Nutshell” (John Wiley), and he contributes articles to daily newsletters and blogs. He produces articles and videos on the how-tos of technical trading. Based in Australia, Stuart speaks at conferences and events worldwide.
Stuart McPhee