The US Dollar Gains Slightly Amidst The Fed’s Decision Today

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Ahead of the Fed Reserve’s decision on interest rates, the U.S. Dollar softened slightly in the Asian session today. The market is looking strong and ready for a 75-basis point (bp) increase from the Federal Reserve as the Federal Open Market Committee (FOMC) s scheduled for today.

As experts have kept saying, volatility could hit the market if there is anything other than a 75 bp shift in policy. The statement from Fed Chair Jerome Powell is still generating reactions.  In his previous comments, he noted that the main risk the market is facing is not controlling and managing inflation rather than the impacts of a recession.

Uncertainty On Future Availability Of Natural Gas

Germany’s limited energy supply from Russia is beginning to have its toll on the euro. Earlier this month, Russia warned that its natural gas supply to Germany will be limited because of incapacity from the sanctions.

With increased uncertainty on the availability of natural gas ahead of the northern winter, there are fears that the economic situation could get worse.

The Brent contract is steady at around US$104.40 bbl while the WTI futures contract hovers around US$95 bbl as the squeeze on the energy market did not boost crude oil.

Gold Price Is Slightly Lower On The Stronger Dollar

Last week, the crude stockpiles fell by 4 million, according to a report by the American Petroleum Institute. The market will be looking at the Energy Information Administration data for verification.

In addition, the Australian Dollar has contracted slightly over the past week after the Australian headline CPI was released. It recorded a small miss at 6.1% YoY, which has been interpreted as letting the RBA shift from heavy hikes. The gold price is hovering around $1,715 an ounce, a touch lower on the stronger dollar.

WTI crude oil is now getting close to the level it was before Russia invaded Ukraine. It is gradually gaining momentum after rolling over its bearish simple moving averages (SMA). However, the long-term levels remain uncertain as the war in Ukraine still goes on and the sanctions could handicap Russia and cause a further shortage in natural gas.

About Ali Raza PRO INVESTOR

Ali is a professional journalist with experience in Web3 journalism and marketing. Ali holds a Master's degree in Finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of leading cryptocurrency publications including Capital.com, CryptoSlate, Securities.io, Invezz.com, Business2Community, BeinCrypto, and more.