The US dollar is trading broadly flat against other major currencies as Wednesday’s European session gets underway. Traders are holding back from major moves ahead of a data-heavy second half of the week that could shape the greenback’s performance for the remainder of the summer. Later today, key US releases include ADP employment data, second-quarter GDP, and the Federal Reserve’s rate decision and policy statement. Before the week ends, markets will also digest July’s PCE inflation and Non-Farm Payrolls figures. While the Fed is widely expected to keep interest rates on hold, traders will be paying close attention to Chair Jerome Powell’s post-announcement remarks and press conference for any signals regarding the future policy path. Uncertainty remains over the timing of the next move, which could come as early as September. In this context, a hawkish tone from the Fed combined with strong employment data could lend further support to the dollar — potentially accelerating its ongoing resurgence.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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