Focus on FOMC Meeting Today: Will Fed Meeting Steal the Spotlight?

The dollar index dropped to its lowest level in more than two months at the very start of the week ahead of the Fed Meeting. The currency extended its decline from last week as investors believed the US Federal Reserve had ended its rate hike cycle and gauged when the central bank might start cutting rates.

The dollar index hit a low of 103.3750, its weakest level since September. the greenback plunged nearly 1.90% last week, which was the biggest weekly percentage drop since mid-July 2023.

Crude Oil futures sparked more than 3%, as further supply cuts in OPEC+ production are expected in the coming weeks and with the FOMC Meeting today, things are getting interesting. An uptick in U.S. Treasury yields, with investors awaiting minutes of the last Fed Meeting for cues on the central bank’s interest rate path. Copper prices gained as expected to be sustained in China as Beijing widened its budget deficit to target an extra CNY 1 trillion in manufacturing and infrastructure development, lifting the outlook for copper.

In addition, there were reports that the central bank plans to inject additional liquidity into 1 trillion yuan of the country’s debt to real estate developers.

The dollar index which measures the currency against six major counterparts fell 0.31% at 103.499. MCX Gold futures settled at 60705 down 0.01%. Silver at 72691 down 0.61%. Copper prices settled at 716.50 down 0.15%.  Crude oil settled at 6545 up 3.14%. Natural gas settled 241.80 down 1.10%

Economic data and Events Scheduled Beside the Fed Meeting:


At 2.00pm -ECB President Lagarde Speaks.

The above mentioned data could propel volatile impact on the Euro.


At 12.30pm – Public Sector Net Borrowing.  Data is foreseen at 21.0B from previous 13.5B.

At 3.45pm – Monetary Policy Report Hearings.

Above data could have a volatile impact on the Pound.


At 7.00pm-

CPI m/m. Data is foreseen at 0.2%. Previous was at -0.1%.

Median CPI y/y. Data is foreseen at 3.6% from the previous 3.8%.

Trimmed CPI y/y. Data is foreseen at 3.6% from the previous 3.7%.

Common CPI y/y. Data is foreseen at 4.3% from previous 4.4%.

The Canadian Dollar could be negatively impacted with the above mentioned data.


At 8.30pm –Existing Home Sales. Data is foreseen at 3.90M from previous 3.96M.

At 12.30am – FOMC Meeting Minutes.              

Above data and Minutes could have a volatile impact on the dollar

Commodity Samachar
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