Investors await the Federal Reserve’s policy announcement, with markets pricing a 62% chance of unchanged rates at 3.50%-3.75%.
The Japanese Yen remains flat against the US Dollar at 163.75 in Asian trading, as investors await the Federal Reserve’s policy decision on Wednesday. The USD/JPY pair shows little direction amid caution ahead of the announcement, with the US Dollar Index slightly lower at 101.46.
Markets expect the Fed to hold interest rates steady at 3.50%-3.75%, with a 62% probability, while a September hike remains possible. No forward guidance is anticipated, as Fed officials have signaled reluctance to provide long-term outlooks. Attention also turns to the Bank of Japan’s Friday meeting, where rates are expected to stay at 1%.