The dollar rose against most currencies yesterday on hopes of guidance at the Federal Reserve’s meeting, which is due to finish later today. However, the greenback is weaker again this morning as worries over the US economy set in.
Although no changes to monetary policy are expected, it’s thought that there may be a slight change in emphasis on guidance offered by Fed officials. They are expected to stick to their ‘dovish’ stance, though, following several gloomy forecasts from Fed officials.
The US stimulus package, proposed by Republicans in the Senate, has attracted some criticism from both Democrats, who claim that the package is too limited, and fellow Republicans, who say that it is offering too much.
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