FX.co ★ Dollar Holds Steady Ahead of Fed Decision

The dollar index remained stable at approximately 99.2 on Wednesday, maintaining gains from a two-day rise as investors awaited the latest policy decision from the Federal Reserve. The Fed is anticipated to implement its third 25 basis point interest rate reduction of the year. However, the decision is not unanimous among policymakers. Some advocate for additional rate cuts to bolster a slowing economy, while others caution against hasty reductions that might trigger renewed inflation pressures. In addition to the rate decision, markets will keenly analyze Federal Reserve Chair Jerome Powell’s comments following the meeting for insights into rate projections up to 2026. Noteworthy economic data emerged Tuesday, revealing that U.S. job openings increased by 12,000 to 7.670 million in October. This follows a significant rise of 431,000 to 7.658 million in September, with both months surpassing the forecasted 7.2 million. In a separate report, the weekly ADP employment data highlighted that the U.S. private sector saw an average increase of 4,750 jobs per week over the four weeks ending November 22, marking a recovery following three consecutive periods of declines.