Dollar Steady Ahead of Fed Meeting
The dollar index hovered around 97.6 on Monday, holding close to ten-week lows as investors awaited the Federal Reserve’s closely watched policy meeting this week. Markets are pricing in about a 96% chance of a 25 basis point rate cut on Wednesday and roughly a 4% probability of a larger half-point move.
Those bets follow recent US data showing a cooling labor market and subdued inflation. Traders are also monitoring whether Stephen Miran will be sworn in as a Fed governor in time for the meeting, while fresh signals on economic momentum will come from the Empire State Manufacturing Index due later today.
Elsewhere, central banks in Canada and China are expected to cut rates this week, while policymakers in Japan and the UK are likely to keep settings unchanged.
Source : Trading Economics
