The U.S. Dollar closed Tuesday's session lower as the Federal Reserve started its two-day meeting Tuesday, with many investors expecting the central bank to deliver a dovish outlook on monetary policy when the meeting ends on Wednesday.
Furthermore, The Fed's released its December meeting, signaled two rate hikes were in the pipeline for 2019, but with signs of an economic slowdown, economists expect the number of rate hikes on the "dot plot' of forecasts will fall to only one this year.
Moreover, the central bank is also expected to reveal plans to halt its balance sheet unwind, reinforcing the message that it's "pivoting to neutral," putting both rate hikes and the balance sheet on hold.
The U.S. Dollar Index which measures the strength of Greenback against a basket of six major currencies fell by 0.135 percent to finish the session at 95.83.
Over in Europe, the single currency rose on Tuesday against the U.S. Dollar as investors are waiting for the end of the Federal Reserve meeting. EURUSD closed the session at 1.13513.
Meanwhile, the Sterling rose slightly against the Greenback to close the session at 1.32636. Investors are concerned that Prime Minister Theresa May's request for delaying Brexit was running into complications with the European Union.
Regarding Safe-havens, the Swiss Franc rose against the U.S. Dollar to close Tuesday's session at 0.99917 USDCHF. Also, the Japanese Yen rose against the Greenback to settle at 111.409 USDJPY.
Gold prices rose on Tuesday by 0.22 percent to settle at 1306.25 supported by investors' expectations that the Federal Reserve will send markets a more dovish message about future monetary policy after Today's meetings.
Meanwhile, the Canadian Dollar rose against the U.S. Dollar on Tuesday after the release of an official report showing higher than expected Foreign Securities Purchases. The USDCAD closed the session at 1.33181.
Over in Asia, the Aussie Dollar fell by 0.215 percent against the U.S. Dollar after recording lower than expected House Price Index (HPI) to close Tuesday's session at 0.70872.
Cryptocurrencies finished Tuesday's session in mixed territories as Bitcoin and Ethereum rose against the U.S. Dollar to close at 3974.11 BTCUSD and 139.19 ETHUSD respectively, while Litecoin fell against the U.S. Dollar to settle at 57.41 LTCUSD.
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