Dollar Steadies Ahead of Fed Minutes
The dollar index steadied around 102 on Wednesday after coming under pressure in the previous session, as investors awaited minutes from the Federal Reserve’s latest meeting for clues on the outlook for monetary policy. Traders also watched remarks from Fed officials, with policymakers increasingly signaling a less hawkish stance on interest rates following softer-than-expected PCE inflation and jobs data released last week. Markets are currently pricing in nearly an 80% chance that the Fed will keep policy unchanged this month. Meanwhile, investors continued to monitor bond markets after a recent selloff fueled by concerns over persistent inflation, rising fiscal risks and elevated levels of AI-related debt issuance. Elsewhere, oil prices climbed as Iran intensified attacks on tankers in the Strait of Hormuz and Saudi forces continued clashes with the Houthis, keeping inflationary pressures and rate hike concerns in focus.
The dollar index steadied around 102 on Wednesday after coming under pressure in the previous session, as investors awaited minutes from the Federal Reserve’s latest meeting for clues on the outlook for monetary policy. Traders also watched remarks from Fed officials, with policymakers increasingly signaling a less hawkish stance on interest rates following softer-than-expected PCE inflation and jobs data released last week. Markets are currently pricing in nearly an 80% chance that the Fed will keep policy unchanged this month.
Meanwhile, investors continued to monitor bond markets after a recent selloff fueled by concerns over persistent inflation, rising fiscal risks and elevated levels of AI-related debt issuance. Elsewhere, oil prices climbed as Iran intensified attacks on tankers in the Strait of Hormuz and Saudi forces continued clashes with the Houthis, keeping inflationary pressures and rate hike concerns in focus.