Forex – dollar lower, in view of a rate hike from the Fed

© Reuters. – The us dollar was lower Wednesday, as investors await the u.s. federal Reserve should raise its interest rates later in the day.

The dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.57% to 96,06 at 10h21 ET (15h21 GMT).

The Fed is expected to raise its rates by 25 basis points for the fourth time this year at 14: 00, eastern time (19h00 GMT). Investors will be watching for any new comments on possible policy changes in 2019 and forecast for the next year, also known under the name of “dot-plot”.

Of Fed officials, including Fed chairman Jerome Powell, stated that the interest rates were almost neutral, and they have become more cautious vis-à-vis the policy of the FOMC, fearing a slowdown in global growth.

The dollar was down against the japanese yen, with USD / JPY down 0.3% to 112.19.

The british pound was higher, with GBP / USD up 0.19% to 1,2663, while the first british minister, Theresa May, still trying to work with the european Union to seek assurances as to the security agreement. The euro was also driven by the decline in the dollar, with an increase of the EUR / USD from 0.6% to 1,1430.

Elsewhere, the NZD / USD rose 0.2% to 0,6862 while AUD / USD rose 0.1% to 0,7186.

The canadian dollar has increased with USD / CAD down 0.3% to 1,3425 after data showed that canadian inflation had slowed in November.

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