The USD Finds Grip Ahead of Fed’s Decision.

USD

The US Dollar moderately eased in the Asian session today after the USD (DXY) index rebounded to 0.68%.

The market expects a 75- basis point (bp) hike from the Federal Reserve at the end of today’s FOMC meeting.

Anything other than a 75 bp shift in policy can unsettle the market. If that is the case, the market will focus on any commentary from Fed Chairman Jerome Powell.

Previous comments from him have shown his belief that the main risk of the market is not controlling the recession but the aftermath of the recession.

By the way, the energy supply from Russia to Germany continues to affect the Euro as there is increased unpredictability in the continuous availability of gas ahead of winter.

The tightness of the energy markets did not lift crude oil as the WTI futures contract staggered around US$ 95 bbl and the Brent contract near US$ 104.40 bbl.

Last week, the American Petroleum Institute reported that the crude stockpiles were reduced by 4 million barrels. Markets will focus on the Energy Information Administration data later today for verification. You might also like: Australian Dollar Crashes, despite USD gains

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