US Dollar Holds Steady Ahead of Fed Policy Decision


The dollar index, which measures the performance of the United States dollar against a basket of the World's major currencies, drifted lower to 90.11, erasing prior gains ahead of the Federal Open Market Committee meeting results. The Federal Reserve kicked off a two-day meeting yesterday to discuss the latest on the economy and keep the monetary policy checked. There are no expectations for any policy changes, but investors will look forward to any guidance from Powell on how the Federal Reserve will react to solid data. On the other hand, the US 10-year Treasury yields held steady near their lowest levels in three-week, as investors await the developments over Biden's stimulus plan. The GBPUSD rallied to $1.3752, and the EURUSD held steady near $1.2155.


Major US stock index futures were mixed as investors anticipate earnings results. Technology companies are outperforming peers, leading to gaps in performance between indices. On the other hand, investors are waiting for the progress on Biden's rescue plan, and whether his team will be able to pass it as it is. The Tech-heavy Nasdaq rallied to a record high of 13598, the S&P500 futures eased to 3833, and Dow Jones Industrial Average futures dipped to 30735.


Precious metals prices continued to trade in a tight range awaiting the Federal Reserve monetary policy meeting outcome. Investors are looking forward to any confirmations from the Fed on the current policy stance. The price of a gold ounce hovered near $1847, the price of a silver ounce was almost unchanged near $25.40, while palladium futures continued to slide, falling to $2313.


Oil prices held prior gains supported by a drop in US stockpiles and a falling number of COVID-19 19 cases in China. The American Petroleum Institute reported a sharp decline of 5.272 million barrels in US oil stocks. Meanwhile, the Chinese Authorities only reported 75 new covid19 cases. The West Texas Intermediate crude March delivery rose to $53.02, and the Brent blend March contract rallied to $56.34.

Major Economic Events

GMT Country Event Expectation Previous



 Durable Goods Orders (MoM) (Dec)





 Crude Oil Inventories





 Fed Interest Rate Decision





 FOMC Press Conference 




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