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US Dollar steadies near 101.50 ahead of Fed, GDP and PCE

Markets are focused on a Fed decision expected to keep its 3.50%–3.75% target range, with second-quarter GDP forecast to rise to 2.3% and Core PCE seen easing to 0.1%.

Reported · Written up by our desk · Major Pairs

The US Dollar Index (DXY) was trading near 101.50 as investors looked to a busy week combining central bank decisions from the Federal Reserve, Bank of England and Bank of Japan, along with key US data.

FXStreet said the main catalyst for the Greenback is the Fed, which is widely expected to keep its target range unchanged at 3.50%–3.75%. The meeting is described as lighter because it would not include an updated dot plot, making the monetary policy statement and Fed Chair Kevin Warsh’s press conference the key sources of guidance.

The outlook also hinges on US economic releases later in the week. Durable Goods Orders are expected to rebound 1.6% in June after falling 4.5% previously, while Wednesday’s Fed decision is followed by a Thursday batch including preliminary second-quarter GDP forecast at 2.3% annualized, Core PCE expected to slow to 0.1% from 0.3%, and Initial Jobless Claims projected to rise to 206K from 187K.

FXStreet noted that stronger growth or persistent inflation could reinforce expectations for a restrictive Fed stance, while softer price pressures may reduce the case for additional tightening. EUR/USD was also reported lower near 1.1370.

Latest closeEUR/USD 1.138 ▼0.2%|Dollar index 101.44 ▲0.3%

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