Stocks firm, dollar on edge ahead of Fed decision

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SINGAPORE : Asia's stockmarkets steadied on Wednesday, with signs of a slowdown in U.S. wages bolstering hopes that the Federal Reserve could hint at an end to interest rate hikes at its meeting later in the day.Wall Street indexes had rallied, as had bonds to a lesser extent, while the dollar gave up gai

SINGAPORE : Asia's stockmarkets steadied on Wednesday, with signs of a slowdown in U.S. wages bolstering hopes that the Federal Reserve could hint at an end to interest rate hikes at its meeting later in the day.

The Fed will announce its rate decision at 1900 GMT, followed by a news conference with Chair Jerome Powell half an hour later. "The market is anticipating some pushback from Powell, although it's difficult to pin down how much is enough to convince the market," said Brian Daingerfield, head of G10 currency strategy at NatWest Markets.

The dollar dropped for a fourth straight month in January, and lost 1.5 per cent on the euro and 0.8 per cent on the yen. Both pairs were steady in early Asia trade, with the euro at $1.0860 and the dollar buying 129.91 yen.U.S. treasuries were cautiously firmer in Asia, with benchmark 10-year yields down 2 bps to 3.5105 per cent. S&P 500 futures fell 0.3 per cent.

Macroeconomic data was less encouraging. Japan's factory activity contracted for a third straight month in January, a private survey showed on Wednesday.

 

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