Dollar Holds Firm Ahead of Fed Decision
The US dollar index steadied around 98.7 on Wednesday, maintaining recent gains as investors awaited the Federal Reserve's monetary policy decision. The central bank is widely expected to keep interest rates unchanged, but markets will be focused on its forward guidance amid tariff uncertainties and geopolitical risks. Traders are also eyeing fresh US housing data and weekly jobless claims, due ahead of Thursday's market holiday.
The dollar surged nearly 1% on Tuesday, driven by safe-haven demand as conflict between Israel and Iran escalated. President Donald Trump further fueled geopolitical tensions, demanding Iran's “unconditional surrender” and threatening a strike against Supreme Leader Khamenei in posts on Truth Social. On the economic front, US retail sales data for May came in weaker than expected, although underlying consumer spending remained resilient, supported by strong wage growth.
Source: Trading Economics