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20/05/24
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USD Firm as Investors Wait for Guidance from Fed
On Monday, the US dollar was firm versus the euro as investors waited for more clues to help them evaluate the path of U.S. interest rates after cautious comments from Federal Reserve officials, even though inflation showed signs of easing.
On Monday, Raphael Bostic, the Atlanta Fed President said it would take a while for the central bank to be sure that inflation was on track back to the central bank’s target of 2%.
Bostic said the issue was when the Fed was going to be sure that inflation was on a clear path back to 2%. He added that he believed that it would be a while before the Fed knew that for sure.
Several other Fed speakers are also scheduled to speak on Monday and later this week. The focus will also be on the minutes of the Fed’s previous meeting, which will be released on Wednesday.
The euro was 0.05% lower versus the dollar at $1.0836 and 0.3% higher versus the yen at 156.15 yen.
Last week’s data showed U.S. consumer prices in April lifted less than expected, and this led to markets pricing in 0.5% of rate cuts by the Fed this year. Various Fed officials have however expressed caution about when rates may be cut.
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