The US dollar experienced bearish movement against almost every major currency counterpart yesterday, with the exception of the British pound (GBP). The EUR/USD was trading higher at a price just under 1.3700, up from 1.3575. The USD/JPY moved downward yesterday, hitting a low of 81.97 before rebounding back to 82.20; the pair now looks to be continuing downward as of this morning.
Mixed economic reports show growth in American consumer confidence, but a mild decrease in manufacturing and a composite housing index. Growing consumer confidence may explain a large portion of the USD's bearishness yesterday since investors took the optimism as a sign to invest in riskier assets, thereby pulling away from their safe-haven USD positions.
Today's news appears to be anticipating a continuation of the current trends. The Federal Open Market Committee (FOMC) will release its latest decision today regarding short-term interest rates - also known as the Federal Funds Rate. Rates are expected to remain unchanged, but recent figures of consumer optimism may pressure committee members to issue hawkish statements about future monetary policy. Traders should anticipate heavy USD volatility as a result.