LONDON - The dollar steadied on Wednesday after hitting a four-week high against peer currencies the day before as market players awaited key U.S. inflation data and the Federal Reserve's policy decision and updated economic projections later in the day.
The Fed is widely seen holding rates at 5.25%-5.5%, putting the focus on policymakers' updated economic projections known as the"dot plot" and Chair Jerome Powell's news conference for clues regarding the timing and pace of cuts. "I could see a repeat of that today. He's got a little more ammunition to be dovish today," Turner added, citing an easing in some activity data, a rise in the unemployment rate and inflation coming closer to target.
"For today, should the U.S. data or Powell come in on the dovish side, I don't think euro-dollar will be the best vehicle to play the weaker dollar," he added.