LONDON—The dollar edged lower against major currencies on Friday as concerns resurfaced about the health of the U.S. economy, and ahead of producer inflation data later in the day and a Federal Reserve meeting on interest rates next week.
After a lull in market-moving news, investors are looking towards rate decisions next week—including from the Fed, the European Central Bank, and the Bank of England.
Markets are betting all three will slow the pace of their rate hikes, with 0.5 percentage point increases across the board, while still trying to check inflation.
Volatility levels for major currencies have retreated towards their long-run average, currency analysts at MUFG said in a note, as markets start to price in the prospect of peak interest rates early next year….