US Dollar Strengthens Ahead Of Possible Fed Policy Break
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against a basket of six major currencies, rose and recovered to 103.60 at the time of writing on Wednesday (3/19). The surge in the greenback followed a sharp surge of more than 5% in the USD against the Turkish Lira (TRY) after headlines emerged that authorities had detained Istanbul Mayor Ekrem Imamoglu, a key political rival of President Tayyip Erdogan, on charges including corruption and aiding terrorist groups.
On the economic data front, it was a very quiet day ahead of the Federal Reserve’s (Fed) decision on interest rates later in the day. The Federal Open Market Committee (FOMC) will announce its policy rate decision and publish an update of its Summary of Economic Projections (SEP). Following the meeting, Fed Chair Jerome Powell will make comments in a press conference. With Trump’s policies in place, markets are eager to know how many, if any, rate cuts the Fed members have planned for 2025 and beyond. (Newsmaker23)
Source: FXstreet
