USD stabilized on Wednesday in a limited range of trading, with investors reluctant to build new positions in anticipation of Fed meeting results, which are expected to include interest rate hikes for the second time this year, as well as new evidence of tightening monetary policy. US economy this year.
USD index is trading at 93.80 points from the opening level of 93.79 points, recording 93.97 points and 93.72 points.
The index ended yesterday’s trading up 0.3%, its third daily gain, after a better-than-expected reading of US inflation levels in core terms in May.
Federal Reserve is due to conclude its regular meeting on Friday to discuss appropriate monetary policies for the growth of the world’s largest economy, with full prospects for raising interest rates for the second time this year.
The odds jumped to 100% against a 0.25 percentage point hike to 2.0%, especially after recent strong data from the US labor market. US monetary policy makers previously confirmed a three-fold rate hike in 2018.
US interest rate, monetary policy statement and quarterly economic outlook are released by 18:00 GMT and Federal Reserve Chairman Jerome Powell is speaking at 18:30 GMT.
Investors are focusing on the monetary policy statement and Powell’s comments, looking for new evidence of the possibility of accelerating monetary tightening and raising interest rates four times this year.