Market comments on behalf of Maria Agustina Patti Financial Markets Strategist Consultant to Exness
30th January 2025
The U.S. dollar remained stable as traders braced for the Federal Reserve’s meeting. All eyes are on the upcoming interest rate decision later today and Jerome Powell’s speech. While the Fed is expected to keep interest rates unchanged, market participants will focus on Powell’s tone and his reactions to current developments. A hawkish tone could support the dollar, while a dovish stance might weigh on the currency.
Markets will also monitor the decisions of the Bank of Canada (BoC) and the European Central Bank (ECB), which are scheduled today and tomorrow respectively. Both are expected to continue their rate-cutting cycle, potentially providing an edge to the dollar against the respective currencies. Key US and European economic indicators, including GDP growth figures could also affect the market tomorrow.
Meanwhile, U.S. Treasury yields declined to a certain extent, with the 10-year yield hovering near 4.5%. Volatility could increase after Powell’s speech as US yields could rise in reaction to a hawkish tone.