U.S. FOMC likely to keep policy unchanged in November, likely to hike in December

The U.S. FOMC meeting is set to take place this week. According to a TD Economic research report, the U.S. Fed is expected to remain on track for another hike in December but should not hint at any change in policy.

The risk is for a modest dovish market interpretation from mark-to-markets edits to the description of recent data in the statement. There is a small likelihood that the FOMC might release information regarding its balance sheet deliberations, implying an earlier end to runoff that previously indicated.

“That would likely generate a more dovish market response”, added TD Economics.

At 17:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -60.5504. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex