By Ankur Banerjee

SINGAPORE (Reuters) -The U.S. dollar was steady on Wednesday, holding onto overnight gains as traders braced for crucial inflation reports this week that could help define the size and scope of interest rate cuts from the Federal Reserve for next week and beyond.

After a dismal jobs report last week cemented expectations of a rate cut from the Fed at its September 16-17 policy meeting, the only question for investors is whether the magnitude of the cute would be 25 basis points or 50 basis points.

Much of that will depend on the extent of the impact from tariffs on prices in the world’s largest economy. U.S. producer price inflation data is due on Wednesday followed by the consumer price inflation report on Thursday.

Traders are fully pricing in a 25 bps cut next week

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