Forex
The US dollar is losing ground to other major currencies during early Tuesday trading, erasing most of the previous session’s gains. The performance of the greenback has, to a large extent, been determined by market expectations over the pace and scope of the Federal reserve’s tightening cycle. As we approach this Wednesday’s rate decision, it is widely assumed that the Fed will hike rates by 75 basis points. With that scenario already priced in, the focus is now on the tone used by Jerome Powell, when he speaks after tomorrow’s rate announcement. Investors will be looking for hints of a pivot in monetary policy, and today’s losses already reflect such expectations.
