Dollar in holding pattern as Fed two days policy meeting gets underway

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Dollar in holding pattern as Fed two days policy meeting gets underway

 

On Tuesday, the dollar is trading against the basket of world currencies, as the Fed's two-day policy on exchange rate policy overshadows economic data, demonstrating an improvement in consumer optimism about the US economy.
The US dollar index, which measures the strength of the dollar against a basket weighted in a basket of six major currencies, rose 0.01% to 93.83
The dollar weakened from its highs, as investors were waiting for a decision to release the Federal Reserve on Wednesday, which is expected to give a fresh idea of ​​how the US central bank is thinking about tightening monetary policy.
Analysts expect that the Federal Reserve will keep the base rate unchanged on Wednesday.
On the eve of the Fed decision, the dollar was struggling to take advantage of the expected data on consumer confidence, which surpassed expectations in July, easing concerns about a possible recession in the US economy.
The consumer confidence index rose in July to 121.1 to a 16-year high, despite expectations of a fall, the Conference Board said on Tuesday.
Economists predicted that the main indicator of consumer optimism will drop to 116.5 in July.
Meanwhile, GBP / USD fell to $ 1.3036, which is 0.06% higher after it rose to session highs of $ 1.3084 amid a tweet from President Donald Trump, in which he said his administration is working on a "major trade deal" with the United Kingdom.
It is expected that the speech of a member of the Bank of England from the Bank of England Andy Haldane during the session will contribute to further understanding of whether the central bank continues to support the idea of ​​reducing tough measures to mitigate monetary policy this year.
EUR / USD is trading at $ 1.1654, down 0.09%, while EUR / GBP added 0.01% to 0.8938.
USD / CAD is trading at $ 1.2502, which is 0.02% lower, after rising oil prices, confirmed the growth of the oil-sensitive sauna, while USD / JPY rose to $ 1116, an increase of 0.47%.