The Two-day FOMC meeting kicks off on Tuesday with a hold priced in for Wednesday’s interest rate decision.
US consumer sentiment declined in April, while Q1 Employment Cost Index increased.
Hawkish bets on the Fed continue to favor the USD.
The US Dollar Index (DXY) is presently trading higher at 105.95, while the two-day Federal Reserve (Fed) meeting kicked off. Markets are expecting a hawkish hold by the central bank, but messaging by Jerome Powell will be key. On Tuesday, positive mid-tier data is acting as a tailwind for the Greenback.
The US economy is witnessing resilience and persistent inflation, which makes a case for a hawkish hold by the Federal Open Market Committee (FOMC), which will likely show their lack of confidence in the progress being made.
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