The dollar is fairly flat across the board this morning as it awaits the Federal Reserve’s announcement on interest rates this evening. They are expected to cut rates by 25 basis points for the third time this year. Despite some citing the easing of geopolitical tensions, such as the US-China trade war and Brexit, an interest rate cut is still thought to be firmly on the cards. Another cut is also forecast for early next year. With a cut already priced in, the markets will be looking for any comments on the Fed’s stance on policy outlook, which could have an impact on the dollar.
Before this, we’ll see the release of GDP figures for the US, which are expected to fall by 0.1% for the third quarter of this year.
Data yesterday revealed that the Consumer Confidence index for September dropped to 125.1, missing expectations of 133.5. Consumers have been seen as a recent major driver of the economy, so this drop could be concerning.
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