Dollar Holds Firm as Fed Meeting Looms
The dollar index held around 102 on Tuesday after rising for two straight sessions, as investors prepared for a busy week of economic data and the Federal Reserve’s upcoming policy announcement. Markets are pricing in roughly a 90% chance that the Fed will keep interest rates unchanged this week, while the probability of a rate hike in December stands at around 82%. Key data releases, including GDP growth and the PCE inflation index, will also be closely watched for clues about the outlook for monetary policy. Meanwhile, renewed market interest in the AI trade, spurred by Anthropic’s IPO filing, supported the dollar given the AI sector's boost to American economic growth. On the geopolitical front, fears that the US could resume strikes on Iran after the midterm elections continued to support safe-haven demand for the greenback.
The dollar index held around 102 on Tuesday after rising for two straight sessions, as investors prepared for a busy week of economic data and the Federal Reserve’s upcoming policy announcement. Markets are pricing in roughly a 90% chance that the Fed will keep interest rates unchanged this week, while the probability of a rate hike in December stands at around 82%. Key data releases, including GDP growth and the PCE inflation index, will also be closely watched for clues about the outlook for monetary policy. Meanwhile, renewed market interest in the AI trade, spurred by Anthropic’s IPO filing, supported the dollar given the AI sector's boost to American economic growth.
On the geopolitical front, fears that the US could resume strikes on Iran after the midterm elections continued to support safe-haven demand for the greenback.