The U.S. dollar traded steady on Wednesday against major currencies ahead of the U.S. Federal Reserve meeting, where investors will scrutinize and await the Fed’s indications of a recent inflation spike.
The Fed is expected to conclude its policy meeting and issue a new economic forecast along with a policy statement in the early hours of Thursday morning Malaysian time.
The central bank is expected to respond particularly on the bond -buying program launched in 2020. Investors expect that the Fed will maintain their stance and will not issue any indications to reduce stimulus in the near future.
The US dollar index, which measures the US dollar against major currencies, traded at the 90.532 price level with an increase of 0.03%. The euro began to depreciate against the US dollar, to the level of $ 1.2114.
On the other hand, the pound continued to strengthen against major currencies during the opening of European markets following a boost from rising consumer prices that exceeded the BOE's target.
The UK inflation reading rose to 2.1% in May from 1.5% in April.
Market players will scrutinize the press conference after the Federal Open Market Committee (FOMC) meeting for any change of tone from Fed Chief Jerome Powell on their stance on inflation which is either temporary or ongoing.
