Sterling, yen stronger on session

Story link: Sterling, yen stronger on session

The US dollar was steady ahead of the Federal Reserve’s newest decision on interest rates on Wednesday. Most analysts were expecting that the Fed would keep rates on hold and many were more interested to see the statement accompanying the decision than they were to see the decision itself. By mid-afternoon in New York, the dollar was flat at $1.3540 versus the euro.

Trade was cautious, too, ahead of Thursday’s rate decisions from the Bank of England and the European Central Bank. Sterling added 0.4 percent against both the euro and the dollar, to £0.6782 and $1.9975 respectively. While most analysts are expecting a 25 basis point raise by the Bank of England’s Monetary Policy Committee, some are still worried that the committee could go further and raise rates by 50 basis points. The consensus is that sterling will remain strong until the decision is released, but that if the raise only 25 basis points it could send the UK currency lower.

The Japanese yen was stronger on the session, adding 0.2 percent in relation to both the dollar and the euro, with the yen trading at ¥119.75 versus the greenback and at ¥162.24 against the shared currency.