"The US dollar held steady on Monday, hovering near a multi-week low as investors looked ahead to the Federal Reserve's policy decision this week. Market pricing shows about a 95% chance of a quarter-point rate cut on Wednesday, while only a small probability is expected for a larger half-point move. Markets are also pricing in three rate cuts by year-end. Attention will also be on the Fed's updated "dot plot"."
"and Chair Jerome Powell's press conference, which will be critical in shaping expectations for the easing path. If Powell's message and the projections lean more dovish than markets anticipate, both the dollar and Treasury yields could come under renewed pressure. Conversely, if the Fed signals a more cautious approach, the downside could be contained. Treasury yields were steady, with the 10-year holding above 4.0%."
The US dollar remained near a multi-week low as investors awaited the Federal Reserve's policy decision. Market pricing indicated roughly a 95% probability of a quarter-point cut on Wednesday, with minimal odds of a half-point move, and markets priced about three cuts by year-end. Focus centers on the Fed's updated "dot plot" and Chair Jerome Powell's press conference to shape the expected easing path. A more dovish signal could weigh on the dollar and Treasury yields, while a cautious tone could limit downside. The 10-year Treasury yield stayed above 4.0% as investors monitored inflation dynamics and guidance risks.
Read at London Business News | Londonlovesbusiness.com
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