US Dollar Loses Ground Following the Decision by the Federal Reserve

The Pound started Wednesday in a good position as it strengthened at the start of trading following the release of the UK’s CPI which came in at a ten-year high.

This gave the currency a boost although these gains were quickly lost come the afternoon. Economists gave their views on the likelihood of a rate hike and it is believed that policymakers will take caution, especially with the growing threat of Omicron. At the end of trading, according to the Foreign Exchange Market, the currency finished at 1.147 against the Euro and 1.3263 against the US Dollar.

The Euro was mixed during trading yesterday as investors took a cautious approach in light of the interest rate decision from the Federal Reserve. There was also a lack of data and that left the single currency in an uncertain position, causing it to become volatile through the day.

The US Dollar made up some ground during a turbulent day as investors readied themselves for the announcement from the Federal Reserve. Following the decision, the Greenback dropped sharply, even though the bank is speeding up its tapering plans and planning three hikes next year. So, the downside in the currency seemingly came from profit-taking.

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