The dollar was down against the pound and the euro yesterday, due to mixed U.S. data and caution ahead of a two-day Federal Reserve meeting, which pushed the dollar further away from a near two-year high. The greenback remains in a weak position this morning.
No policy changes are expected as a result of the Fed’s meeting, which is due to end with a rate announcement this evening. However, President Trump has called for the Fed to cut interest rates by 1 percentage point and to implement more money printing quantitative easing.
In US-China trade news, the White House is putting increasing pressure on China to secure a deal in the next two weeks. It has said that it would be ready to walk away from negotiations if necessary – something that we have seen them do before when closing negotiations with North Korea.
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