FX.co ★ Dollar Holds Gains Ahead of Fed Decision

The US dollar index hovered around 102.4 on Wednesday after rising for three straight sessions, supported by investor caution ahead of the Federal Reserve’s upcoming policy decision. The central bank is widely expected to leave interest rates unchanged, though traders will closely watch for signals on the likelihood of a possible rate hike in December.

On the corporate front, Alphabet and Microsoft are scheduled to report earnings after Wednesday’s market close, with investors scrutinizing the results for indications of AI-driven demand, a key contributor to US economic growth.

Elsewhere, the dollar climbed more than 1% against the New Zealand dollar after the Reserve Bank of New Zealand unexpectedly left its cash rate unchanged, defying projections for a 25-basis-point increase. Investors will also be tracking upcoming monetary policy decisions in Canada, the euro area, and Japan.