Dollar Steadies Ahead of Fed, BoE, and BoJ Decisions

The US Dollar Index held steady near 99 as markets await key policy decisions from major central banks. The Federal Reserve, Bank of England, and Bank of Japan are all set to make announcements this week.

The Fed's decision on Wednesday is expected to be a closely watched event, with markets predicting a 25bp rise in interest rates to take the target range to 4.00% from 3.75%. This move would come after an August Consumer Price Index reading that showed core inflation running above forecasts.

Other key economic data releases this week include Canada's August inflation reading on Monday, followed by the UK labour report and Germany's ZEW survey on Tuesday. Wednesday will also see the release of UK CPI and US Retail Sales before the Fed's projections and press conference.