The U.S. dollar was seen trading subdued on Tuesday. Economic data was sparse. From the Eurozone, the German WPI was seen rising 0.3% on the month. The data beat forecasts of a 0.2% estimates.
Consumer confidence data from the U.S. was seen rising to 138.4. The data beat estimates of 132.2. This marks the highest level in 18 years. Meanwhile, the Richmond Fed manufacturing index was seen rising to 29.0 beating estimates of 22.0
The Bank of Japan will be releasing its core CPI measure in a while. Forecasts point to a 0.6% on the year ending August. This marks a modest increase from 0.5% previously.
The economic data during the European trading session is very quiet. This puts the focus on the Fed meeting due later during the NY trading session. Investors expect the Fed to hike rates by 25 basis points at today’s meeting. This would bring the short-term interest rates to 2.0% – 2.25%. It also marks a third rate hike this year.
Fed officials will be releasing the staff economic projections and the dot plot which will act as a guide on where future interest rates are heading. There will also be a press conference due later with Fed Chairman, Powell.
Expect to see some volatility in the markets during the Fed announcement.