Monthly Currency Round Up
The dollar hit an almost two-week high on expectations that U.S. interest rates will still be raised in the near future. Although the Fed decided not to raise rates in September many analysts are still betting on a rise in rates in October or December.
Conversely expectations for the European Central Bank and Bank of Japan are increasing that they will expand their respective stimulus programmes. That is driving down both the Euro and Yen, which is acting as a further boost to the USD.
GBP nudged up in strength against the Euro, bolstered by expectations that the Bank of England will eventually raise interest rates.
The European Central Bank has come under pressure to take a looser stance after the US Fed left interest rates unchanged at its mid month policy meeting. A rise in rates in the US would have supported the European economy by weakening the Euro against the USD.