FOREX
The Dollar Index is showing some weakness during early Tuesday trading, amidst a low-liquidity market that is likely to continue until the conclusion of June’s Federal Reserve policy meeting tomorrow. No major shifts in monetary policy are expected to emerge from the gathering, however investors will be listening with interest, scanning for hints of inflation-related worries from bank officials. This will be the last big economic calendar event for dollar traders before summer takes over, so it is likely to set the tone for the next couple of months. The maintenance of the current dovish stance will probably weigh the dollar down, while any slips of the tongue suggesting the need to anticipate tapering are likely to propel the greenback to multi-week highs.
Ricardo Evangelista – Senior analyst, ActivTrades
