Dollar Falls Further ahead of Fed Policy Decision

USD

The dollar index, which measures the greenback against a basket of major currencies, extended downfall dropping to a three-month low of 96.11 ahead of the Federal Open Market Committee meeting decision. Market participants are looking forward to the meeting outcome, to grasp hints over the economic outlook, as the Fed will release the economic projections today, which includes inflation, unemployment, and growth, besides the dot plot. Moreover, Powell is expected to provide clarifications on the error in the last jobs report, and when the Federal Reserve could start reducing the stimulus. The EURUSD rallied to $1.1369, the GBPUSD soared to $1.2778, and commodity-currencies inched higher.

Equities

Major US stock-index futures edged higher during the Asian session as investors await the Federal Reserve policy meeting. Investors are expecting more clarifications on the overall state of the US economy, and whether the Fed is willing to introduce fresh stimulus to boost the economic recovery. The Dow Jones Industrial Average futures rose to 27488, the S&P500 futures rallied to 3222, and Nasdaq futures surpassed 10,000 level for the first time in history to trade at a high of 10016.

Metals

Gold prices recovered fully from the losses incurred on Friday as US Treasury yields declined. The price of a gold ounce rose to $1720, the price of a silver ounce ascended to $17.76, while palladium futures tumbled to $1960.

Oil

Oil prices drifted lower as a private survey shows a buildup in inventories. The American Petroleum Institute reported a buildup of 8.4 million barrels in US oil stock, triggering oversupply concerns. The official figure by the US Energy Information Administration will be published later today. The West Texas Intermediate crude July delivery dipped to $37.99, and Brent Blend August delivery dropped to $40.39.

Major Economic Events

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