Dollar Trades Sideways Ahead of Fed

2026-06-17 10:20 By Joana Taborda 1 min. read

The dollar index hovered around 99.6 on Wednesday, trading broadly sideways as investors awaited the FOMC decision later in the day.

The Fed is widely expected to leave the federal funds rate unchanged, but investors will focus closely on forward guidance and the latest economic projections.

The meeting will also be the first chaired by Kevin Warsh, with doubts arising over whether he will submit a “dot” in the FOMC’s quarterly Summary of Economic Projections, which outlines policymakers’ expectations for the future path of interest rates.

Markets are currently pricing in at least one 25bps rate hike this year, although those expectations have eased slightly following reports of an interim US-Iran peace deal.

The announcement triggered a sharp drop in oil prices and momentarily eased concerns over inflationary pressures.

Earlier this week, the BoJ raised its policy rate by 25bps.

The BoE is due to decide on monetary policy tomorrow and no changes in borrowing costs are anticipated.



News Stream
Dollar Trades Sideways Ahead of Fed
The dollar index hovered around 99.6 on Wednesday, trading broadly sideways as investors awaited the FOMC decision later in the day. The Fed is widely expected to leave the federal funds rate unchanged, but investors will focus closely on forward guidance and the latest economic projections. The meeting will also be the first chaired by Kevin Warsh, with doubts arising over whether he will submit a “dot” in the FOMC’s quarterly Summary of Economic Projections, which outlines policymakers’ expectations for the future path of interest rates. Markets are currently pricing in at least one 25bps rate hike this year, although those expectations have eased slightly following reports of an interim US-Iran peace deal. The announcement triggered a sharp drop in oil prices and momentarily eased concerns over inflationary pressures. Earlier this week, the BoJ raised its policy rate by 25bps. The BoE is due to decide on monetary policy tomorrow and no changes in borrowing costs are anticipated.
2026-06-17
Dollar Steadies Ahead of Fed Decision
The dollar index hovered around 99.5 on Wednesday after experiencing heightened volatility earlier in the week, as investors awaited the Federal Reserve’s latest policy decision, where officials are widely expected to leave interest rates unchanged. The meeting will also be the first under new Chair Kevin Warsh, although he is not expected to submit a "dot" to the FOMC’s quarterly projections outlining individual policymakers’ rate expectations. Market participants will also focus on upcoming US retail sales and pending home sales data for further clues on the economic outlook. Earlier this week, the Reserve Bank of Australia kept its benchmark interest rate unchanged at 4.35%, while the Bank of Japan raised its policy rate by 25 basis points to 1%. Meanwhile, investors continued to monitor developments surrounding the US-Iran peace agreement, which is set to be signed on Friday and is expected to reopen the Strait of Hormuz and restore oil flows from the Middle East.
2026-06-17
Dollar Stabilizes Ahead of Fed Meeting
The dollar index steadied around 99.6 on Tuesday after weakening in the previous session, as investors turned their focus from the US-Iran peace deal announcement to the Federal Reserve’s upcoming policy meeting. The central bank is widely expected to leave interest rates unchanged at its first meeting under new chair Kevin Warsh. Still, policymakers face a challenging backdrop, with recent inflation data coming in hotter than expected as the conflict with Iran drove energy prices higher. Investors also looked ahead to policy decisions from central banks in Japan, Australia, the UK, and other major economies this week. On Monday, the dollar came under pressure after President Donald Trump announced that the US had reached a peace agreement with Iran that would restore access through the Strait of Hormuz. The deal is expected to be signed in Switzerland on Friday.
2026-06-16