US Dollar Eases Ahead of Fed Decision Amid Mixed Market Sentiment
The US Dollar (USD) has eased ahead of the Federal Reserve's monetary policy announcement on Wednesday. The Greenback remains close to its recent monthly high, but investors have reduced some exposure as they wait for the Fed's decision.
Softer US Consumer Confidence data has limited demand for the currency, and markets assign a 40% probability of a 25-basis-point interest rate increase. Investors will focus on the policy statement and Chair Kevin Warsh's press conference for signals regarding a possible September move.
The EUR/USD pair has risen around 0.2% and trades near 1.1390, benefiting from the modest retreat in the US Dollar. The AUD/USD pair has fallen around 0.2% and trades close to 0.6975 as investors prepare for Australian inflation figures.