LONDON—The dollar edged up on Thursday, supported by a push higher in U.S. Treasury yields, as investors weighed the outlook for Federal Reserve policy against the chances that high interest rates could lead to a recession.
Next week brings a raft of major central bank decisions, including those from the Federal Reserve, the European Central Bank, and the Bank of England.
The key question for traders and investors is whether inflation has reached a peak, giving policymakers more scope to deliver smaller interest-rate rises over the coming months.
U.S. monthly consumer inflation is also due next week, one day before the Fed’s policy meeting on Dec. 14, and could be pivotal in setting longer-term expectations for monetary policy….