Dollar Strengthens Post-FOMC: Market Braces for Shifts

By Tomasz Wisniewski|

Published: November 22 2023, 06:17 GMT+0

Dollar Strengthens Post-FOMC: Market Braces for Shifts

In our latest market update, we delve into the unfolding scenarios post-FOMC meeting minutes, which continue to influence the financial landscape. The absence of any hint towards rate cuts in the latest Federal Reserve meeting highlights persisting concerns over inflation, a key driver in current market dynamics.

As we pivot to the macroeconomic calendar, notable was the remarkable earnings report from NVIDIA. Despite significantly surpassing EPS and revenue expectations, the tech giant faces a potential 2% drop as indicated by after-hours trading. This serves as a reminder of the complex interplay between earnings performance and market reactions.

Looking ahead, today’s calendar features pivotal data from the US, including unemployment claims and the revised University of Michigan Consumer Sentiment. Furthermore, Bank of Canada Governor Macklem speech will likely provide insights into Canada’s economic outlook.

The currency market is currently witnessing a strengthening of the American dollar, leading to modest reversals in pairs like EURUSD and USDJPY. Despite indices hovering near local peaks, there’s an emerging sentiment for a potential bearish correction.

Commodities, particularly gold, silver, and oil, have seen an uptrend in recent sessions. However, today’s trading might bring a shift, especially for oil, as the market anticipates possible corrections following three consecutive days of gains.