U.S. Dollar Index Futures Market News and Commentary
The dollar index (DXY00) this morning is up +0.130 (+0.13%). Mar euro-fx futures (E6H0) are down -0.0021 (-0.19%), and EUR/USD (^EURUSD) is down -0.0025 (-0.23%). Mar yen futures (J6H0) is up +0.0001 (+0.01%), and USD/JPY (^USDJPY) is down -0.01 (-0.01%).
The dollar index is higher this morning but remains just below Tuesday's 1-3/4 month high. Weakness in EUR/USD is providing some support for the dollar today.
The forex market is looking ahead to this afternoon's outcome of the 2-day FOMC meeting. The FOMC is expected to keep its funds rate target range unchanged at 1.50/1.75%, although the FOMC may raise its IOER (interest on excess reserves) rate by 5 bp to 1.60% to encourage the funds rate to trade closer to the mid-point of its target range. The markets will also be watching for any news on the FOMC's program of buying $60 billion per month of T-bills to boost its balance sheet and provide more liquidity to the banking system. The market is expecting that program... Read more