FX.co ★ Dollar Steady Ahead of Fed Meeting

The dollar index remained steady at approximately 97.6 on Monday, continuing to hover near ten-week lows. This comes as investors anticipate the Federal Reserve's highly scrutinized policy meeting scheduled for this week. Current market expectations heavily favor a 25 basis point rate cut on Wednesday, with an estimated 96% probability. There's also a minimal 4% chance of a more significant half-point reduction. These market expectations follow recent U.S. data that revealed a slowdown in the labor market and tempered inflation. Traders are paying close attention to whether Stephen Miran will be inaugurated as a Fed governor in time for the meeting. Additionally, the Empire State Manufacturing Index release, expected later today, will provide fresh insights into economic momentum. Meanwhile, further afield, central banks in Canada and China are anticipated to reduce rates this week, while those in Japan and the UK are expected to maintain their current policies.