Currency market steadies ahead of US inflation test, Fed decision

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Forex News

Us Dollar

TOKYO, June 12 — The dollar steadied today after hitting a four-week high against peer currencies overnight as market players awaited key US inflation data and the Federal...

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Markets are currently pricing in a roughly 56 per cent chance of a cut in September, according to the CME FedWatch tool, down from 77.8 per cent one week ago. “Consensus seems to be that the number of cuts in 2024 will be downgraded from three currently to two” in the latest dot plot, said Kieran Williams, head of Asia FX at InTouch Capital Markets.Powell is likely to strike a relatively dovish tone at the press conference, however, given disappointing growth indicators since the last Fed meeting, Williams said.

Sterling was unchanged at US$1.2735. UK gross domestic production figures for April are due later today. The Bank of Japan will also meet this week, where it is widely expected to keep interest rates steady and consider whether to offer clearer guidance on how it plans to reduce its huge balance sheet.

 

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