Dollar is trading in soft tone in range against most major currencies except versus Yen and Sterling. The greenback shrugs off stronger than expected PPI as markets are awaiting FOMC rate hike, economic projections and press conference. Sterling is trading as the weakest one today as headline UK CPI missed market expectations. But loss is limited so far. Yen is following as the second weakest. Meanwhile, New Zealand Dollar and Euro are the strongest one for today. US Headline PPI rose 0.5% mom, 3.1% yoy in May, versus expectation of 0.2% mom, 2.8% yoy. Core PPI rose 0.3% mom, 2.4% yoy, versus expectation of 0.2% mom, 2.3% yoy. Focus will now turn to FOMC rate decision today. Fed is widely expected to raise federal funds rate by 25bps to 1.75-2.00%. Voting will be the first thing to watch even though it will very likely be unanimous. Fed will also release updated economic projections. The statement, as usual, will be scrutinized. |