US Dollar continues to strengthen ahead of the FOMC meeting, extending its third consecutive day of gains.
On Tuesday, the US Dollar Index (DXY) rose to around 105.36. The session will not have any highlights since cannons refer to Wednesday’s session.
The US economic outlook remains robust, as investors await the FOMC’s latest economic estimates.
Market observers are keeping an eye on the two-day Federal Open Market Committee (FOMC) meeting, which began on Tuesday and will end Wednesday. Furthermore Any changes in the interest rate forecast or advice by Federal Reserve (Fed) members are bound to cause market volatility. The result of the famous dot plot. Will also be properly monitored.
Daily Market movers: DXY gains ground on quiet Tuesday, with eyes on FOMC.
Updated dot plots will provide useful information. A single move from three to two interest rate cuts by a Fed policymaker may raise the 2024 median from 4.625% to 4.875%.
Markets anticipate a hawkish tone from Wednesday’s Fed decision.
Markets anticipate a somewhat ‘hawkish hold’ from the Fed, with rates remaining at 5.5%.
As a result, the chances of a September cut appear to be 50/50, with November cut odds at around 85%.
The US will also disclose inflation figures on Wednesday. Moreover The core Consumer Price Index (CPI) for May is estimated to decline slightly to 3.5% YoY, while headline inflation is expected to remain stable at 3.4%.
https://voiceoftraders.com/analysis/eurusd-remains-fragile-amid-eu-political-turmoil
