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Flash PMIs and US-Iran focus set the tone for FX ahead of Fed meeting

The outlook centers on whether Fed hawks could still push for a rate hike, though a July hold is widely expected.

Reported · Written up by our desk · Central Banks

Forexlive says the European session’s agenda is led by Flash PMIs for major Eurozone economies and the UK, though the data is unlikely to shift policy views because central banks are still prioritizing inflation releases.

In the US session, the focus turns to US Flash PMIs, which the outlet also expects to have limited impact on the Fed in the near term, given the current emphasis on inflation data.

Forexlive adds that rates are widely expected to be held steady at the upcoming July meeting, but notes concerns that hawkish members could argue for an additional “insurance hike,” which it says is unlikely.

The outlet also flags that markets may keep attention on US-Iran developments, suggesting PMIs could be largely ignored unless they show big deviations.

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