Dollar stabilizes ahead of Fed decision and euro rises slightly
The US dollar stabilized on Tuesday, ahead of the start of the last Federal Reserve meeting of the year, while the euro rose against the dollar, supported by a rise in German exports.
The dollar index, which measures the performance of the US currency against a basket of six major currencies, recorded a slight decline to 99.042 points.
The euro rose against the dollar by 0.1%. to $1.1645, supported by a 0.1% rise in German exports in October compared to the previous month, despite a decline in shipments to the United States and China.
It is widely expected that the Federal Reserve will confirm an interest rate cut of 25 basis points at the conclusion of its meeting, tomorrow, Wednesday, while Fed Funds futures price a nearly 90% probability of a rate cut, according to the “FeedWatch” tool. Of the “CME” group.
However, there remains a great deal of uncertainty regarding the direction of monetary easing over the next year, especially with the possibility of announcing a new head of the US Central Bank soon.
ING analysts indicated Until there are high expectations for a “hard cut” In the decision of the Open Market Committee, they stressed that the dollar’s decline will be limited before the meeting in light of the fluctuation of market expectations regarding further easing.
The release of job vacancy data (JOLTS) later in the session is scheduled to be the most important economic data, but its impact on the Fed’s discussions will be limited, as it dates back to last October.
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