NY Focus: It was a grind. A typical pre-FOMC meeting session with data-driven dollar moves, still leaving direction inconclusive. The session started with the greenback hovering just above or below Monday’s closing levels, depending upon the currency pair. The Singapore summit gave the talking heads hours of jabberwocky filled gibberish, but for FX markets, nothing.
US May inflation data was right on forecasts rising 2.8%, y/y and ex-food and energy rising 2.2%, y/y. The data did not have much impact on FX markets, but it does support a hawkish tone to the Fed statement. It coincided with a report that Fed Chair Powell was considering holding a press conference with every FOMC meeting. Dubious, for sure but that’s what happened.