The dollar index, which measures the greenback against a basket of major currencies, is stuck in a tight range near 93 handle, ahead of the Federal Reserve monetary policy meeting. Market participants are looking for further insight into the latest changes in Fed's policy announced at the Jackson Hole symposium, such as how the fed will materialize the average inflation target plan. On the other hand, the uncertainty around the Brexit deal is keeping the dollar at a bid relative to European currencies.
Major US stock index futures edged higher during the first trading days of the week on improved risk sentiment amid renewed hopes for a vaccine that would put an end to the impact of COVID19 on the global economy. However, investors are a bit cautious about the Fed's tone in today's decision, and they are looking for several clues in Powell's presser over the future path of monetary policy. The Dow Jones Industrial Average futures rallied to 28115, the S&P500 futures advanced to $3415, and Nasdaq futures recovered to 11509.
Gold prices remained elevated ahead of the anticipated Federal Open Market Committee meeting. The Federal Reserve will have to provide more information about the Average Inflation Target plan, which could impact investors' demand for gold as it will be related to yields. The price of a gold ounce raced higher to $1972, the price of a silver ounce inched higher to $27.36, while palladium futures soared to $2454, its highest level since early March.
Oil prices edged higher as hurricane Sally forced oil producers in the Gulf of Mexico to shut down activity. Almost 25% of the activity stopped as Sally evolved. On the other hand, the American Petroleum Institute reported a massive drop of 9.517 million barrels in US crude oil stock, ahead of the official figures by the US Energy Information Administration later today. The West Texas Intermediate crude October delivery rose to $39.27, and Brent Blend November delivery rallied to $41.45.