FOMC

The US Dollar is at its highest level since February 2016. The higher investor expectations are for a rate hike, the more it strengthens.

After touching its highest level in July 2016, close to 1380 dollars per ounce, Gold began to weaken and on Tuesday experienced its strongest decline in 3 years - a drop of nearly 3%.

As expected and for the sixth consecutive meeting, the FED has not raised its rates, preferring to wait for more signs of progress.

In August, the BoE said it was prepared to provide more monetary stimulus if necessary. Yet, the Bank decided not to change anything in its monetary policy.

The FED releases its Beige Book eight times a year. Its purpose is to gather information on the economic conditions in each of the twelve areas (or “districts”) of the United States.

August's employment figures (NFP Report) should be examined closely, as according to Janet Yellen, a higher rate in September can still be expected.

The US dollar rallied briefly after the Federal Reserve confirmed that it is on track to lift interest rates in the later part of the year.

The dollar was relatively flat after the publication as it provided few surprises. The committee saw the economy as being robust enough to withstand a rate (possibly in in September) while concerns over Greece were raised as expected.