USD Rises Ahead of Fed Meeting

The dollar firmed on Monday, recovering from recent losses in the wake of some weak U.S. economic data, but gains are expected to be contained ahead of the Federal Reserve’s key monetary policy meeting this week.

The Fed will announce a decision on monetary policy on Wednesday which will help set the tone for the dollar in the near to medium term.

The dollar’s searing rally since the summer of last year had slowed following a run of poor U.S. economic numbers, including a softer-than-expected non-farm payrolls report for March. That has cemented expectations for a more gradual pace of interest rate increases by the Fed.

Last week, weak figures for new home sales, weekly jobless claims and business spending undermined the dollar.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza