The Fed’s monetary policy decision and guidance on Wednesday will take center stage in financial markets and will be key in guiding the near-term path of the U.S. dollar.

The S&P 500 breaks above key Fibonacci resistance and rallies to its best levels since April 2022 on softer-than-expected U.S. headline inflation data ahead of a critical Fed decision on Wednesday.

China lowered a short-term borrowing cost in an attempt to support the economic recovery. Other more influential rates may follow as global growth declines

US inflation data came out positive this afternoon potentially solidifying a pause from the Federal Reserve at tomorrow’s meeting. Will it be a ‘hawkish or dovish’ pause?

The oil market is like all others focused on the Fed but its own dynamics look gloomy

​​Indices have remained in strong form ahead of this week’s key events, with notable strength in the Nikkei as it pushes to its highest level since 1990. ​

EUR/USD is testing 1.0800 again ahead of the latest US inflation report, while EUR/GBP may come back under pressure after a strong UK jobs and wages report.

GBP/USD rallies on strong labor data including average earnings. The pound now looks ahead to US CPI for further guidance.

US CPI could be the deciding factor for the Fed in its upcoming interest rate announcement on Wednesday.