"The dollar held steady on Tuesday as investors positioned ahead of the Federal Reserve's policy announcement and Chair Jerome Powell's highly anticipated remarks on Wednesday. Markets assign nearly a 90% probability to a rate cut this week, while expectations for 2026 point to two additional reductions. Any signal from Powell that the Committee is leaning toward a more dovish policy path could weigh on both the dollar and long-term yields."
"Beyond the rate decision, traders will scrutinise the updated FOMC Economic Projections, which could set the tone for the dollar's trajectory. Adjustments to growth, inflation, or the projected policy rate path may trigger significant repricing across forex and bond markets. In the meantime, investors will also monitor today's JOLTS report and ADP Employment Change Weekly, all of which could help refine expectations for the Fed's next steps."
The dollar held steady as investors positioned ahead of the Federal Reserve's policy announcement and Chair Jerome Powell's remarks. Markets assign nearly a 90% probability to a rate cut this week and expect two additional reductions in 2026. A dovish signal from Powell could weigh on the dollar and push down long-term yields. Traders will scrutinise updated FOMC Economic Projections for revisions to growth, inflation, or the projected policy rate path, and such changes could trigger significant repricing across forex and bond markets. Investors will also monitor the JOLTS report and ADP Employment Change to refine Fed expectations.
Read at London Business News | Londonlovesbusiness.com
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