The dollar is trading in a narrow range against the pound, euro and other currencies this morning. This comes ahead of the conclusion of the Federal Reserve’s latest monetary policy meeting.
The Fed is widely expected to hike the US interest rate by 25 basis points from 0.25% to 0.5% and there could be suggestion that more interest rate rises will follow. This is largely due to high inflation, which is currently running at 7.9%.
Officials are also likely to reveal adjusted figures on inflation and plans to scale back the bond-buying programme that was designed to support the economy through the pandemic.
Before the Federal Reserve’s announcement this evening, retail sales figures will be released for February, expected to show a small uplift month-on-month.
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