© Reuters. The Dollar remains unchanged as the markets wait for the Fed meeting
Investing.com — The dollar has maintained on Monday as investors remained cautious before the Federal Reserve’s highly anticipated policy meeting set to begin Tuesday.
The negotiation was expected to be quiet on Monday with no major U.S. economic reports to be released throughout the day.
The Fed is widely expected to leave interest rates unchanged this week. However, the U.S. central bank could provide guidance on when it plans to start unwinding its balance sheet.
USD/JPY is up 0.59% to eight-week high of 111.47, while USD/CHF held steady at 0.9594.
The market sentiment seems to have recovered from the new Thursday night as North Korea fired a missile over Japan into the Pacific Ocean. It was the peninsula’s second missile launch over Japanese territory in a little over two weeks.
The US President, Donald Trump has been set to the address of the organization of the United Nations for the first time this week and Pyongyang was widely expected to be the order of the day.
In Japan, Prime Minister Shinzo Abe has been said to be considering calling a snap election as early as next month, in order to take advantage of the improvement of its approval rate.
Japanese markets were closed Monday for the Respect-for-the-Aged Day Holiday.
Elsewhere, the EUR/USD added 0.14% to 1.1956, while the pair GBP/USD slid 0.25% to trade at 1.3560, right next to a fresh 15-month peak of 1.3619 hit for the night.
Sterling remained broadly supported after Gertjan Vlieghe, an external member of the Bank of England’s monetary policy committee, said that the rise in interest rates“, as early as in the coming months.”
The comments came after the BoE said in its policy statement, Thursday, that the interest rates could rise faster than expected in the middle of the acceleration of inflation.
The australian and New Zealand dollars were weaker, with AUD/USD down 0.27% to 0.7982 and with NZD/USD shedding 0.26% to 0.7272.
During this time, the USD/CAD edged 0.15% higher to 1.2209.
Data on Monday showed that Canada’s foreign securities purchases rose by C$23.95 billion in July, blowing past expectations for a C$4.46 billion increase.
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 91.67 10:35 pm (ET), 14:35 GMT).