Forex Today: US Dollar awaits Fed policy decisions, dot plot

Here is what you need to know on Wednesday, March 20: The US Dollar (USD) holds steady against its major rivals early Wednesday, with the USD Index (DXY) fluctuating in a tight channel below 104.00 after closing the previous four trading days in positive territory.

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Fed Preview: Forecasts from 15 major banks, risk of a hawkish shift in the dot plot. The UK's Office for National Statistics reported early Wednesday that inflation, as measured by the change in the Consumer Price Index , declined to 3.4% on a yearly basis in February from 4% in January. Other details of the report showedthat the annual Retail Price Index increased 4.5% as forecast, while the Producer Price Index - Input decreased 2.7%. GBP/USD holds steady slightly above 1.

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