© Reuters. Forex
After having ignored the ADP report better than expected earlier this afternoon, the Dollar has a rally for no apparent reason in the news.
EUR/USD has indeed marked a recent low on 1.1963, the lowest since January 10, after a summit at 1.2030 this morning.
This downward movement of the Dollar is also to be found on the GBP/USD, which is returned to the contact of the psychological level of 1.36 after a summit at 1.3664 to the mid-day.
For its part, USD/JPY brand new heights, with a peak at 109.93, the highest since February 5, 2018.
Traders start may be to anticipate a statement from the Fed a bit more hawkish this evening. Moreover, in an analysis published today, Bank of America (NYSE:BAC) Merrill Lynch pointed out that the market only takes into account 2 rate increases to 2019, while the Fed provides 3, while for 2020, the market takes into account any rate increase, then the Fed provides for at least one.
The Fed may as well want to rectify the situation, with a declaration to the slightly hawkish tone, which would help to re-align market expectations and forecasts of the Fed in terms of rate increases.
