Volatile movements graced European session markets, with most major currencies trading higher against the greenback dollar ahead of the FOMC policy announcement.
The greenback dollar trade appears volatile with the volatility movements exhibited, as investors are still assessing whether the Federal Reserve (Fed) will give an indication about to discuss changes in its monetary policy.
The dollar index continued to trade around the same price at 90.50 as exhibited at the beginning of the previous Asian session.
This has provided an opportunity for commodity currencies, particularly the Aussie and New Zealand dollars to bounce back from more than a month -long lows against the greenback.
Meanwhile, the pound traded stronger after being driven by readings of UK annual inflation data that exceeded market expectations, after recording a 2.1% gain in May.
The increase not only shocked the market, but it could raise concerns among Bank of England (BOE) policymakers as the reading recorded exceeded the central bank’s target at 2%.
The euro, on the other hand, moved in line with the movement exhibited by greenback trading, as well as being affected by the statement by the European Central Bank (ECB) which continued to insist on maintaining its monetary policy.
