Currency traders increase expectations of heightened volatility ahead of the Federal Reserve's next policy announcement and updated economic projections.
Federal Reserve officials continue emphasizing a data-dependent approach to monetary policy, keeping traders cautious about the timing of future U.S. interest-rate changes.
Bank of England policymakers continue balancing stubborn inflation against slowing economic growth, leaving the outlook for the British pound uncertain.
Safe-haven demand strengthens during periods of geopolitical uncertainty, boosting demand for the U.S. dollar while pressuring risk-sensitive currencies.
Professional forex traders are increasingly watching real yields rather than nominal interest rates, as inflation-adjusted returns become a key driver of currency valuations.