US dollar steadies ahead of FOMC decision, Powell’s remarks

The US dollar is expected to remain steady against major G20 currencies ahead of the US Federal Reserve meeting, with traders anticipating a firm pushback on rate cuts from the Fed.

The official rate announcement and initial guidance will be released at 19:00 GMT, followed by a press conference with Jerome Powell at 19:30 GMT.

The US Producer Price Index number was in line, triggering no substantial changes. The Mortgage Bankers Association (MBA) released Mortgage Applications for last week, which increased from 2.8% to 7.4%.

The Producer Price Metrics measure inflation on the production side for manufacturers and companies, and any upticks in the metrics will be passed on to clients in stores and filter into Consumer Price Index numbers.

The Fed will release its monetary policy at 19:00 GMT, expected to remain unchanged at 5.5%, and a statement with the Fed’s Dot Plot projections. At 19:30 GMT, US Fed Chairman Jerome Powell will give guidance to the markets on the stance of the Fed.