Awaiting the Fed's Decision, the Dollar Remains Weak
The US dollar weakened again for the fourth day, as markets became increasingly cautious in anticipation of the Fed's interest rate decision on Wednesday. Traders' focus is not only on interest rates, but also on the potential for a surge in volatility if surprises emerge from the political and policy narratives.
The source of pressure on the dollar this month comes from a combination of "the whole package": sentiment that Washington is comfortable with a weaker dollar, plus uncertainty about President Donald Trump's policy direction. This condition makes market participants prone to panic when news is thin—especially when geopolitical issues and the yen are heating up.
In the currency market, the biggest concern remains the yen. After a strong rally in recent sessions, USD/JPY is stuck in the 153-154 area as the market is on alert for any signs of intervention (or US-Japan coordination). Even without official confirmation, rumors alone are enough to discourage traders from going all-in on the yen.
While the dollar is under pressure, the euro and pound are also enjoying a tailwind. EUR/USD is holding near multi-month highs, and GBP/USD is also remaining strong—reflecting outflows from the greenback ahead of the Fed's event risk.
The bottom line: the market is waiting for the Fed's "word," but the biggest risk could come afterward—if the issue of central bank independence and political maneuvering also takes center stage.
Prices & changes (latest from public sources):
DXY: around 96.6 (down approximately 0.4% in the last 24 hours)
USD/JPY: around 153.26 (around -0.6%)
EUR/USD: 1.1926 (vs. previous close of 1.1880 +0.39%)
GBP/USD: 1.3739 (vs. previous close of 1.3683 +0.41%)
AUD/USD: around 0.6946 (vs. previous close of 0.6913 +0.48%).
Source: Newsmaker.id
