Dollar Stronger Ahead of Tuesday’s Fed Meeting

The U.S. Dollar is trading higher at themid-session ahead of tomorrow’s FOMC meeting. In what is probably positionsquaring ahead of the Fed meeting; the Dollar is posting gains against allmajors. The biggest gain coming against the Swiss Franc. 

The U.S. Dollar is trading higher at themid-session ahead of tomorrow’s FOMC meeting. In what is probably positionsquaring ahead of the Fed meeting; the Dollar is posting gains against allmajors. The biggest gain coming against the Swiss Franc. The lack of fresheconomic news following Friday’s disappointing Non-Farm Payrolls Report is mostlikely a contributing factor to the Dollar’s strength.

On Tuesday the Federal Open MarketCommittee is expected to consider renewing its quantitative easing program byreintroducing its purchase of government bonds and mortgages. Some believe,however, that the Fed is only going to consider extending its monetary policyrather than making an actual change. Either way, investors will be keying in onthe language used by the Fed in its policy statement.

Look for the Dollar to gain over theshort-run if the Fed’s remains firm in its policy statement. Any softening inthe Fed’s tone will put pressure on the Greenback.