Forex News: U.S. Dollar Higher Ahead Of Fed Decision

U.S. Dollar Higher Ahead Of Fed Decision

(RTTNews) - The U.S. dollar advanced against its major counterparts in the New York session on Wednesday, ahead of the Federal Reserve's monetary policy announcement, due shortly.

With the Fed almost universally expected to leave rates unchanged, traders will look to the accompanying statement as well as officials' latest projections for clues about the outlook for rates.

CME Group's FedWatch Tool is currently indicating a 99.0 percent chance the Fed will once again leave interest rates unchanged.

The FedWatch Tool currently suggests the Fed is likely to leave rates unchanged again at its next meeting in early May, but the chances of a rate cut increase in June and July.

At the Fed's most recent meeting in late January, the central bank left rates unchanged after it lowered rates by a total of 100 basis points or 1.0 percentage point over the three previous meetings, beginning with a 50 basis point cut last September.

The greenback climbed to a 2-day high of 1.0872 against the euro and a 2-week high of 150.14 against the yen. The currency is poised to challenge resistance around 1.03 against the euro and 151.00 against the yen.

The greenback edged up to 0.8809 against the franc and 1.2954 against the pound. The greenback may face resistance around 0.92 against the franc and 1.24 against the pound.

The greenback touched 0.6321 against the aussie, 0.5776 against the kiwi and 1.4337 against the loonie, setting 2-day highs. The currency is seen finding resistance around 0.61 against the aussie, 0.56 against the kiwi and 1.46 against the loonie.

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