Dollar Slips as Traders Trim Bullish Bets Before Fed Decision
- Markets seek confirmation of expectations for 3 hikes in 2017
- Mexican peso surges as Peter Navarro seems to ease Nafta risk
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The Bloomberg Dollar Spot Index erased its Tuesday advance as traders trimmed long positions ahead of the Federal Reserve’s policy decision.
Investors are expecting the Fed to raise interest rates and will be watching the central bank’s economic projections and statement for clues about the path of monetary tightening. After the dollar climbed for the last two weeks on expectations for a more hawkish Fed, bullish traders could be disappointed if policy makers urge caution.