The euro has hit another fresh high against the dollar this morning as the US currency declined in value for an eighth consecutive day. At 1100, the euro was worth USD1.2260, having earlier hit USD1.2270. The euro also rose against sterling, to 70.41p, while the pound climbed to an 11-year high of USD1.7412. The latest declines come just hours ahead of a meeting by Federal Reserve policymakers, following which they are expected to keep rates on hold at 1.0pc, just half the rate of the European Central Bank and 275 basis points below the Bank of England rate.
The Fed is also expected to retain its easing bias, but may drop its "considerable period" reference in relation to keeping rates low, which will allow it to raise rates without surprising the market. "The FOMC may decide to omit the 'considerable period' clause from their statement as the economy retains the momentum carried from the stellar third GDP figures," said Colin Hunt at Goodbody Stockbrokers. "The freedom to leave rates unchanged stems from the fact that inflation remains at a low 1.3pc." Gold prices are also continuing to rise, with gold per ounce rising USD1.88 to USD408.50 this morning. ///www.fxcentre.com