Currency Markets Brace for Major Rate Decisions as Dollar Holds Firm

The dollar remained stable amid expectations of a U.S. interest rate cut. Global currency movements indicated varying economic performances, with the pound rising due to strong UK wage growth. Interest rate decisions from major banks, including the Federal Reserve, are anticipated to influence market trends significantly.

The dollar held steady on Tuesday, with traders anticipating a potential interest rate cut in the United States. The Federal Reserve is expected to lower borrowing rates gradually in the coming year, adding to market speculation.

In contrast, the pound rose after data revealed stronger-than-expected British wage growth, suggesting UK rates might remain higher for longer. The Federal Reserve's upcoming decision, with a 94% chance of a cut, could set the tone for future economic policies.

The euro and Canadian dollar faced pressures, reflecting expectations of slower rate reductions compared to the U.S. Meanwhile, the Australian and New Zealand currencies persist near lows as economic forecasts unfold across global markets.

(With inputs from agencies.)