The two-day Fed Reserve meeting ends today amid expectations that the Fed could leave its main benchmark interest rate unchanged, but could signal an increased likelihood of a hike by the end of the year.
USD pared its losses vs. a basket of currencies and settled at 96 pips.
Gold settled at $1,315, for the second consecutive session. Technically, the yellow metal is likely to witness sharp fluctuations in conjunction with the monetary policy statement release. The precious metal could decline to $1,300 if everything goes well with Federal Reserve meeting minutes.
On Tuesday, Japanese Yen rose vs. USD amid expectation that the Bank of Japan could keep its deposit rate unchanged at negative 0.1% and the Federal Reserve is unlikely to hike its interest rates. The greenback could settle below ¥100 if the BOJ disappoints.
GBP pared its gains vs. USD and traded at $1.2950. Technically, Cable could decline further to $1.28, if everything goes well with Federal Reserve meeting minutes.
Oil prices settled yesterday, after Venezuela said, “Global crude supplies needed to fall by 10%.” U.S. crude settled at $43.50 and could tread water in anticipation of the U.S. Federal meeting's decisions.
The most important economic events:
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