Dollar Edges Higher against euro as Central Banks Weigh Policy

The dollar pushed higher on the euro and the yen was stronger on Tuesday (Jun 14) as markets girded for monetary policy updates by the Federal Reserve, Bank of England and the Bank of Japan.

The Fed should keep rates on hold but could moderate its previously hawkish view on tighter policy when it releases its statement and new growth forecasts on Wednesday at 1800 GMT, analysts said.

The BoJ could possibly expand its asset purchases to further boost the struggling Japanese economy on Thursday.

Meanwhile, the Bank of England will almost certainly keep policy on hold on Thursday ahead of the Jun 23 Brexit referendum, but the minutes to its last meeting could show the level of concern and preparation if the vote favors breaking with the European Union.

“It makes very little sense for any central bank to do anything before the Jun 23 vote – they need to save their ammo in case markets slip heading into the second half of the year,” said Christopher Vecchio at DailyFX.

Courtesy : channelnewsasia