Forex news
Dollar Steadies as Traders Trim Rate-Cut Bets Before Inflation Print
Rate-cut pricing cools, leaving major pairs range-bound into the data.
The dollar held near a three-week high as traders scaled back rate-cut expectations, leaving EUR/USD pinned below its recent range high ahead of the next inflation release.
The US dollar steadied in early London trade as futures markets pared expectations for near-term policy easing, keeping the major currency pairs inside tight ranges.
What moved the market
Short-dated yields firmed after resilient labour data, and that repricing flowed straight into spot FX. EUR/USD stalled at the top of its two-week range, while USD/JPY held its recent highs.
What it means for traders
Range conditions typically compress intraday spreads on the majors but widen them sharply around the data release itself. Traders using variable-spread accounts should expect a brief cost spike in the minutes surrounding the print.
- EUR/USD: watch the range high for a breakout signal.
- USD/JPY: intervention risk stays in play near recent highs.
- Gold: sensitive to any move lower in real yields.
