The US Dollar (USD) has seen a continuous rise in recent days, with market attention focused on the upcoming Federal Open Market Committee (FOMC) meeting.
Investors are eager for new economic forecasts and possible interest rate changes from the Federal Reserve (Fed). A hawkish tone is anticipated in the FOMC decision, which could influence the direction of the market.
Recent moves in the USD have been driven by the strength of the US economic outlook and market expectations for the Fed’s policies. Analysts are keeping an eye on any changes to interest rate projections and guidance. provided by FOMC members. Inflation data due to be released on Wednesday is also expected to have an impact on the market.
USD technical analysis shows positive indicators on the daily chart, with the index recovering above the 20-day, 100-day, and 200-day moving averages. The future direction of the USD will largely depend on the fundamental developments emerging from the FOMC meeting.
More generally, the US dollar is the official currency of the United States and one of the most widely used in the world. Federal Reserve decisions, such as those related to Quantitative Easing and quantitative tightening, can have a significant impact on the value of the USD in global markets.