Dollar Tries to Rebound, But Markets Wait-and-See Ahead of the Fed
The US dollar rose slightly on Tuesday (January 27th), but its strength is not yet solid. The market remains largely in a wait-and-see mode ahead of the Fed's interest rate decision on Wednesday, while continuing to monitor a sensitive issue: the potential for US-Japan currency intervention, which has made the yen's movements the center of attention.
The main driver remains the yen. In the last two sessions, the yen rallied sharply following talk of "rate checks," often considered an early signal of intervention. As a result, market participants are hesitant to push USD/JPY up too aggressively, fearing sudden official action from the authorities.
On the other hand, pressure on the dollar also comes from political factors. The market perceives an "appetite" in Washington for a weaker dollar, coupled with uncertainty surrounding Trump's frequently changing policies. This combination makes volatility prone to explode after the Fed releases its decision—not because of the interest rate, but because of the policy tone and the issue of central bank independence.
Price updates (latest from public sources):
DXY: 97.117 (+0.06%)
USD/JPY: 154.215 (+0.03%)
EUR/USD: 1.18459 (+0.21%)
GBP/USD: 1.3696 (+0.14%)
AUD/USD: 0.69153 (seen in this area)
Bottom line: The dollar is indeed trying to rebound, but the market is still holding the brakes—due to the "yen drama," the risk of Trump headlines, and the Fed's timing, which can change sentiment in a matter of minutes.
Source: Newsmaker.id
