Markets price 69.5% odds of unchanged rates at 3.50%-3.75% ahead of the Fed’s 18:00 GMT announcement.
The US Dollar Index (DXY) edged down to 101.30 in European trading, reflecting caution before the Federal Reserve’s policy update. The index tracks the greenback against six major currencies and fell against all, most sharply versus the Japanese Yen.
Investors expect the Fed to hold rates steady at 3.50%-3.75% for a fifth consecutive meeting, with CME FedWatch tool odds at 69.5%. Attention will focus on the policy statement and Fed Chair remarks for clues on inflation and future rate moves.
No immediate market reaction was reported, as traders await the 18:00 GMT announcement and press conference.