Dollar Trades Steady Ahead of Fed Decision -- Market Talk

0743 GMT - The dollar trades steady as investors look ahead to the Federal Reserve's interest-rate decision on Wednesday. The market prices a 90% chance that the Fed will leave rates unchanged, LSEG data show, but investors will be looking for any signals about possible future rate rises. With a hold nearly fully priced, the foreign exchange reaction hinges on tone, Monex Europe analysts say in a note. The Fed will likely keep a December rate rise in play without providing formal guidance, they say. If Fed Chair Kevin Warsh suggests higher yields have already done enough in tightening financial conditions, pricing for a December rate-rise could unwind and weaken the dollar, they say. The DXY dollar index trades flat at 101.766. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

October 26, 2026 03:43 ET (07:43 GMT)