The dollar's slipping ahead of the Fed meeting

Good morning!

The US dollar is weaker by 0.2% at 94.75 ahead of Fed day.

Markets see virtually a zero chance of an interest rate hike this time around thanks in part due to the disappointing jobs report in May and the looming Brexit vote.

However, traders will no doubt be keeping an eye on the Fed’s statement and the dot plot.

As for the rest of the world, here’s the scoreboard as of 7:52 a.m. ET:

  • The British pound is stronger by 0.5% at 1.4187 against the dollar after UK unemployment dropped to a nearly 11-year low of 5% in April. Plus, the percentage of employed people climbed to 74.2% — matching the highest reading since record keeping began in 1971.
  • The Chinese yuan closed down by 0.2% at 6.5813 per dollar after MSCI decided not to include China’s A shares in its Emerging Markets Index. Separately, new loans in the country surged as Chinese banks lent out 985.5 billion yuan ($149.56 billion) worth of new loans in May, outpacing the 750 billion yuan that was expected.
  • The Japanese yen is little changed at 106.24 per dollar ahead of Thursday’s Bank of Japan meeting.

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