Dollar strengthen as investors await next Fed meeting

The U.S. Dollar traded slightly higher in Europe on Tuesday. However, gains were limited as investors awaited the next U.S. Federal Reserve meeting for hints on their next move.

The Dollar Index inched up by 0.2% to 96.823 at 3:05 AM ET (0705 GMT), falling over 3% in May.

U.S. employment data for May surprised many after it had revealed an unexpected increase in employment. The figures led many investors to abandon expectations of U.S. interest rates falling below zero in 2021.

While investors are no longer expecting the Fed to further change rate settings, many are speculating that a possible enhanced bond-buying program is in the works.

The Euro slipped against the Dollar by 0.2% to $1.1272, revealing little signs of weaknesses even after German data revealed a record slump in April due to decreasing demand.

The Euro was strengthened after the European Central Bank on Thursday decided to increase its emergency bond-buying scheme above expectations to €1.35 trillion.        

The Dollar fell by 0.3% against the Japanese Yen to ¥107.86.

The British Pound Sterling also fell against the Dollar on Tuesday, slipping by 0.2% to £1.27.