All eyes will be on the Federal Reserve’s press conference later today. The dollar index, which tracks the currency against six others, reached a one-month high yesterday, but has slipped slightly this morning.
The press conference concludes the Federal Reserve’s two-day meeting about monetary policy. Whilst interest rates are expected to remain unchanged, higher US inflation and a recovering economy will prompt traders to listen closely for any comments around tapering monetary policy.
Any signs that the Fed thinks higher inflation is not as transitory as first thought will also be listened out for. Core inflation figures last week showed the largest yearly rise for May since 1992.
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