Central Banks Face Tough Decisions Amid Conflicting Data

This week's central bank meetings in the US and UK are set to be closely watched as both countries face tough decisions on interest rates.

The Federal Reserve (Fed) is due to announce its interest rate decision at 7pm BST on Wednesday, but conflicting data has made it difficult for the Fed to determine the current state of the US economy.

Ahead of the announcement, the August Consumer Price Index (CPI) figures showed subdued core inflation, while preliminary September University of Michigan consumer sentiment figures recorded a sharp decline in sentiment.

Market forecasters think the Fed will stand pat, but Bloomberg interest rate probabilities assign an almost 90% chance of a hike, which could lead to USD struggling for headway this week.