The FOMC starts their 2-day policy meeting today and will culminate with tomorrow’s rate announcement at 2pm ET. A 25 basis-point hike is widely anticipated so the focus will be on the Fed’s statement for clues into ongoing rate strategy. Differences among FOMC policymakers have begun to surface, with some voting members shifting to a more dovish stance in support of the labor market.
The U.S. dollar index is higher today for the 6th consecutive daily gain, trading at 101.441. Resistance is nearby at 102.00, and support now at 99.50. The USD is mixed against its G10 counterparts, 0.74% vs. NOK, 0.25% vs. CAD, 0.22% vs. EUR, -0.40% vs. AUD, -0.16% vs. NZD, -0.14% vs. CHF, and -0.08% vs. JPY.
Equity indexes are mixed today showing minor net gains and losses. But equities have had a bullish month as seen in the S&P 500 Index which has gained 2.34% during July. What’s more, the S&P 500 is in its 5th consecutive monthly gain and is 14.72% since February’s close at 3970.15. If nothing else, equity traders believe the Fed is near the end of its rate tightening cycle.
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