📊 Market Overview: Asia Session Recap

During the Asia session, major indices including Japan’s Nikkei 225, South Korea’s Kospi, and Australia’s S&P/ASX 200 posted mild declines as markets braced for the Fed’s decision. The U.S. dollar remained stable while Treasury yields edged higher, showing resilient demand ahead of the announcement. The Reserve Bank of Australia (RBA) held its cash rate at 3.6%, marking its third straight pause as inflation showed mixed signals and the labor market remained solid.

🌍 What It Means for Europe & U.S. Sessions

With global GDP expected to hold around 3% through 2026, today’s European and U.S. sessions are guided largely by:

• The upcoming Federal Reserve rate cut
• Delayed U.S. labor and inflation data
• European retail and borrowing metrics
• Post-shutdown volatility
• Shifts in global trade and inflation expectations

All eyes are on the FOMC’s rate path, updated economic projections, and Powell’s commentary—factors that could steer USD strength and risk sentiment for the remainder of the week.

💱 Currency & Commodities Performance

Here is a consolidated outlook across major currencies and commodities for the next 24 hours:

Global currency markets remain centered on the Fed’s upcoming decision, with the US Dollar (DXY) holding firm above key support as higher Treasury yields and softer expectations for deep rate cuts give it a stable footing. Gold (XAU/USD) is trading slightly higher around $4,195–$4,196, supported by a softer USD and growing anticipation of near-term rate cuts, giving it a medium-bullish tone. Over in Europe, the Euro (EUR) is trading near multi-week highs around 1.1650, backed by hawkish ECB sentiment and ongoing discussions among EU leaders regarding the use of frozen Russian assets for Ukraine. The Swiss Franc (CHF) remains close to multi-year highs with USD/CHF near 0.8058, reflecting safe-haven demand and positioning ahead of the SNB meeting. The British Pound (GBP) holds near 1.3327, showing stability after recent gains although capped below 1.34 as markets await Fed clarity. The Canadian Dollar (CAD) trades firmly near 1.3851, supported by strong employment data that reduced expectations for further Bank of Canada easing. Meanwhile, oil prices remain under pressure, with both Brent and WTI declining slightly as Iraq restores production at the West Qurna 2 oilfield, reinforcing concerns about oversupply and sustaining a medium-bearish outlook for crude.

📰 Key Events to Watch Today

• JOLTS Job Openings (3:00 PM GMT)
• ADP Weekly Employment Change (Tentative)
• API Crude Oil Stock (8:30 PM GMT)
• UK Monetary Policy Report Hearings (12:15 PM GMT)
• No major EUR or CAD data events scheduled

📉 Final Outlook

With the U.S. Fed decision just hours away, market volatility is likely to increase across currencies, commodities, and equities. Traders should remain vigilant, manage risk tightly, and monitor real-time updates as the direction of the USD—alongside global sentiment—may shift sharply following the FOMC statement and Powell’s press conference.