Investing.com – The u.s. dollar has depreciated on Wednesday in the face of a basket of its rivals before the monetary policy decision from the federal Reserve, while the british pound has stabilized after having slipped in the previous session in the face of new concerns about the prospects of “Brexit” without an agreement.
The dollar index, which tracks the greenback against six major currencies, was at 95,48 at 03h05 ET (08h05 GMT). The index reached a minimum of 95,30 Tuesday, its lowest level in two weeks.
The Fed was expected to leave interest rates unchanged at the conclusion of its policy meeting two days later in the day, after having identified four times in the last year.
This means that the attention will be on the press conference of the president Jerome Powell and on the last update of the outlook for the Fed’s policy. Recent comments dovish of the representative reported a slowing of the rate increase this year, as worries spiked in the face of slowing global growth and fragile financial markets.
The traders provide only for a single rate increase to 2019, although most economists polled by Reuters last week expect two, in the second and fourth quarters.
“It is generally expected that the Fed will maintain its policy. But the dollar could face pressure if the Fed chooses to emphasize the negative effects of the closure of the u.s. government in its statements, ” said Masafumi Yamamoto, chief strategist of the foreign exchange at Mizuho Securities.
The markets are also focused on trade negotiations, u.s.-sino to Washington on Wednesday and Thursday, while the jobs report in the United States will be published Friday.
The dollar slipped lower against the yen, with USD / JPY reaching a low of 109.22.
The book has picked up, with the GBP / USD at 1,3074, after a fall of 0.63% Tuesday evening after the House of commons has rejected a proposal to prevent the Brexit. Britain should leave the EU on the 29th of march.
“It is difficult to say what is the next step for the book. But the maturity of the Brexit march 29, will probably be extended, and the central point is the time when and the manner in which such a decision is applied, ” says Yukio Ishizuki, a strategist in foreign exchange at Daiwa Securities.
The pound sterling was unchanged against the euro, with EUR / GBP to 0,8742.
The single currency was little changed against the greenback, with the EUR / USD to 1,1430 after having reached a peak of two weeks to 1,1459.
– Reuters contributed to this report