Compared to this time last week, the dollar begins the week marginally up on sterling, the euro and several of its major competitors including the Canadian dollar and Japanese Yen.
All eyes turn to the Fed this week as policymakers will vote on the country’s interest rate. In a speech at the Brookings Institution on Wednesday, the Fed’s Chair Jerome Powell said the Bank may scale back the pace of its interest rate hikes already in December. Powell also said, “It makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down. The time for moderating the pace of rate increases may come as soon as the December meeting”.
Markets are pricing in a 50-basis point rate hike to 4.5% in this Wednesday’s decision.
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