Reducing dollar fluctuations on the eve of the Federal Reserve meetingDeltafx Admin 1 February 2023
As investors await the Federal Reserve’s interest rate decision, currency movements in the market have slowed down;
On Wednesday, on the eve of the Federal Reserve’s interest rate policy meeting, and due to the expectation of an end to the Federal Reserve’s interest rate hike cycle, the dollar index was generally flat.
After a series of unexpected rate hikes in 2022 to curb inflation, the market is expecting a 25 basis point (bps) rate hike later on Wednesday. However, the main focus will be on Federal Reserve Chairman Jeremy Powell’s news conference, as traders will try to gauge how long the Fed’s tight monetary policy will last.
eanwhile, the dollar index fell 0.16% in yesterday’s trading, partly due to the release of a report showing that U.S. labor costs rose at the slowest pace in a year in the fourth quarter.