The euro climbed to a two and a half week high against the US Dollar on Monday (14/09) afternoon as investors still wait and see the outcome of US FOMC monetary policy this week. EUR / USD touched 1.1360 at the end of today's Asian session, the pair became the highest level since August 27. EUR / USD then consolidated in the 1351 figures, up 12:11 percent. Meanwhile, against the pound sterling, the euro topped 0.7345 figure.
Forex Markets Wait And See
Sentiment towards the US dollar is still quite vulnerable amid US economic data recorded diverse and global financial market volatility lately that have the potential to destabilize the US Federal Reserve's determination to raise its benchmark interest rate Thursday tomorrow.
The latest data released on Friday from the US explained the figures are preliminary index of consumer sentiment slipped to 85.7 from the 91.9 figure in July, as well as lower than the 91.2 forecast. A separate report on the same day showed US consumer price index was observed flat in December after increase of 0.2 percent in July, as reported by the US Department of Labor.
The Fed's monetary policy committee (FOMC) will again hold a two-day meeting on September 16 to 17 next. Market participants are waiting and watching (wait and see) whether interest rates will rise this month, December, or early next year. Chairman of the Fed, Janet Yellen, it has been said that the interest rate increases will depend on the data. However, some people digest the statement as an indication that Yellen expects to start its benchmark interest rate hikes the Fed before the end of this year.
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