Currency Market Focus Turns Toward Fed Dot Plot
The greenback remains modestly stronger after yesterday’s data showed inflation running too hot for the Federal Reserve’s comfort. Equity investors – largely prepared for a repeat of January’s stronger-than-expected print – shrugged and kept bidding indices higher. But with core price growth topping expectations for a second month in a row, currency traders doubled down on bets interest rate differentials would remain tilted in the dollar’s favour, temporarily snapping a month-long slide in the DXY index. The “dot plot” presented after next week’s Fed meeting could prove more important than the decision itself. A material change seems unlikely, but remarkably-loose...