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The dollar is hovering in suspense ahead of the Fed

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The dollar is hovering in suspense ahead of the Fed

The dollar is hovering in suspense ahead of the Federal Reserve’s latest monetary policy decision.

The US dollar index is little changed at 99.07 as of 8:09 a.m. ET.

The Fed will be out with its latest decision at 2 p.m. ET on Wednesday.

Virtually no one is expecting the Fed to raise rates at the meeting. However, what people will be looking for is how the Fed appraises recent economic data.

The World Interest Rate Probability data provided by Bloomberg shows a 69.6% chance the central bank will move in June or sooner.

Separately, ADP Employment Change came in at 177,000 for April, above expectations of 175,000. Later on, Markit services PMI and ISM non-manufacturing will cross at 9:45 a.m. ET and 10 a.m. ET, respectively.

As for the rest of the world, here’s the scoreboard as of 8:16 a.m. ET:

  • The euro is little changed at 1.0920 against the dollar. Earlier, German unemployment change came in at -15,000, better than economists’ expectations of -12,000, while the unemployment rate held steady at 5.8%. Separately, far-right candidate Marine Le Pen and centrist Emmanuel Macron will square off in a final debate on Wednesday ahead of Sunday’s elections.
  • The Australian dollar is down by 0.8% at .7473 per dollar after three consecutive days of advances. 
  • The British pound is little changed at 1.2929 against the dollar after construction PMI came in at 53.1 for April, above expectations of 52.0, and above the prior reading of 52.2.
  • The Russian ruble is down by 0.4% at 57.2669 per dollar, while Brent crude oil, the international benchmark, is up by 0.5% at $50.73 per barrel.

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Read more stories on Business Insider, Malaysian edition of the world’s fastest-growing business and technology news website.



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