"The US dollar remained pinned near multi-month lows on Wednesday. Traders could remain cautious ahead of the Federal Reserve's policy decision later today. Markets are already pricing a quarter-point rate cut as a near certainty, with the focus firmly on the Fed's updated projections and Chair Jerome Powell's tone regarding the path of easing into year-end. Tuesday's data releases did little to alter the outlook."
"Retail sales rose 0.6% in August, beating expectations. Industrial production also surprised to the upside, ticking up 0.1% after July's -0.4% decline. While these results suggest some resilience in consumer spending and factory activity, they were not strong enough to shift sentiment, given the broader signs of a cooling labour market that have dominated recent weeks. Treasury yields were stable across the curve, with the 10-year holding firmly near 4.0%."
The US dollar hovered near multi-month lows as traders awaited the Federal Reserve's policy decision. Markets priced a quarter-point rate cut as highly likely, focusing on updated economic projections and Chair Powell's comments about easing into year-end. August retail sales rose 0.6% and industrial production increased 0.1%, indicating some resilience in consumer spending and factory activity but not enough to change the broader outlook amid signs of a cooling labour market. Treasury yields remained stable across the curve, with the 10-year around 4.0%. Bond investors positioned cautiously, expecting yields and the dollar to react to any dovish or cautious guidance from the Fed.
Read at London Business News | Londonlovesbusiness.com
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