The currency market kicked off early Thursday trade in stabile movement, with the US dollar stabilising against major rivals, according to Reuters. Traders awaited further economic data to gauge Federal Reserve policy direction, following concerns sparked by Tuesday's higher-than-expected US consumer price index (CPI-U). Market odds for a June rate cut slipped from 71 to 65 per cent, while chances for a July cut stand at 83 per cent, according to LSEG's rate probability app. Attention now turns to the Fed's upcoming meeting and updated economic projections. Analysts predict the Fed may adopt a more hawkish stance, potentially reducing expected rate cuts from three to two this year. Fed Chair Jerome Powell hinted at possible easing soon, while markets await US retail sales, producer prices index (PPI), and jobless claims data. The dollar index rose slightly to 102.85 ahead of these releases. Dollar inched up to 147.89 yen amid speculation about the Bank of Japan (BOJ)'s monetary policy meeting on March 18-19. Reports suggest the BOJ may consider ending negative rates if wage negotiations yield positive outcomes. This anticipation has already been factored into dollar/yen pricing. Attention now shifts to future rate hike prospects and potential reductions in Japanese government bond purchases. Failure to lift negative rates next week could push the yen to 150 per dollar. Elsewhere, the euro slipped slightly to $1.0942 ahead of European Central Bank (ECB) officials' statements. Sterling remained stable at $1.2792 following positive growth data for Britain's economy. In the cryptocurrency market, bitcoin held steady at $73,092.00 after reaching a record high, while ether declined to $3,963.70.
