Dot Plot update may bolster the USD

Dollar Movement Ahead of FOMC Decision

Yesterday’s decline in the US dollar seemed to reflect traders adjusting their positions in anticipation of today’s FOMC announcement, rather than renewed confidence in global political developments. Since the onset of the Iran conflict, the usual correlation between oil prices and the dollar has weakened, suggesting that, at least for now, market participants are turning their attention toward central bank policy decisions. This shift comes amid ongoing uncertainty and little indication of a quick resolution to geopolitical tensions.

Looking ahead to today’s FOMC meeting, expectations are that interest rates will remain unchanged. However, there is a notable possibility that the Dot Plot projections could be revised in a more hawkish direction, with the median forecast currently under scrutiny.