Updated January 30th, 2024 at 08:48 IST

Dollar maintains tight ranges ahead of Fed meeting, jobs data

The euro zone prepares to unveil flash GDP data for the fourth quarter, albeit expectations hint at a less optimistic outlook compared to the US.

Reported by: Business Desk
Dollar | Image:Pixabay
Advertisement

The dollar exhibited limited movement against its major counterparts on Tuesday as traders awaited the Federal Reserve's monetary policy decision for indications on potential rate cuts.

Anticipation loomed over the release of jobs opening data by the US Department of Labour Statistics later in the day, offering insights into the forthcoming payroll report scheduled for Friday.

Advertisement

In the Asian trading session, the dollar remained steady as market participants proceeded cautiously ahead of the two-day FOMC meeting commencing on Tuesday. 

While the Fed is anticipated to maintain interest rates, attention is directed towards the tone Federal Reserve Chair Jerome Powell will strike during the press conference on Wednesday, particularly any suggestions of future rate adjustments.

Advertisement

Market sentiments suggest a diminished likelihood of a rate cut in March, down to 46.6 per cent from 73.4 per cent a month prior, according to the CME Group’s FedWatch Tool. 

Analysts, such as Matt Simpson from City Index, express skepticism regarding the meeting's dovishness, potentially prompting a rebound in the US dollar and yields.

Advertisement

US job opening figures will initiate a series of domestic employment data releases, culminating in the significant US payrolls report for January on Friday, offering further insights into the nation's economic strength post the Fed's robust hiking campaign.

Meanwhile, the euro zone prepares to unveil flash GDP data for the fourth quarter, albeit expectations hint at a less optimistic outlook compared to the US.

Advertisement

European Central Bank policymakers remain divided over the timing and triggers for policy action, with markets fully pricing in a move in April. 

The euro remained mostly unchanged, while sterling held firm ahead of the Bank of England's monetary policy meeting.

Advertisement

Elsewhere, the dollar depreciated marginally against the yen, while Japan's jobless rate fell to 2.4 per cent in December, slightly below economists' expectations.

In the cryptocurrency, bitcoin witnessed a modest increase, rising to $43,275.63.

Advertisement

(With Reuters Inputs)

Advertisement

Published January 30th, 2024 at 08:46 IST