FTSE 100 Live: Federal Reserve rates outlook feeds market caution

Reuters

FOREX-Dollar climbs as Fed set for lengthy inflation fight

“The bigger picture for the dollar is that it’s in a strong uptrend,” said Matt Simpson, a senior analyst at brokerage City Index in Brisbane, adding it has now paused a weeks-long pullback “In some ways, bulls are looking to step back in and I think the Fed minutes gave them a reason to do so.” Fed officials saw “little evidence” late last month that U.S. inflation pressures were easing, minutes released on Wednesday showed. Traders see about a 40% chance of a third consecutive 75 basis point Fed rate hike in September, and expect rates to hit a peak around 3.7% by March, and to hover around there until later in 2023.

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