Counting down the moments of the FOMC meeting, the US dollar retreated ahead of its 20 -year high against major rivals in the European session.
The Federal Reserve (Fed) decision will be finalized early Thursday morning (local time), where the market puts expectations for interest rates to be raised by 75 basis points.
The decline provided an opportunity for several major currencies to record gains, particularly the euro which awaited a follow -up statement from the European Central Bank (ECB) surprise meeting held at 5pm.
Meanwhile, the pound gained modest gains by trading at around 1.2000 against the USD. The Bank of England (BOE) policy meeting on Thursday will be the next market after the Fed’s decision.
The European Union (EU) is reportedly preparing to take legal action against the UK over changes made in the post-Brexit trade agreement.
In addition, the Aussie and New Zealand dollars also rose slightly after expectations of higher rates pushed the two currencies lower, with the kiwi dollar having touched a 2-year low.
In addition to the Fed’s decision, the release of Australian employment and New Zealand economic growth data on Thursday will determine the next move for the two currencies.
