Dollar strengthens ahead of Fed decision as Gold tests key support

Frank Walbaum

Important news this week

Wed, 28th, 01:30 CET AU Consumer Price Index.

Wed, 28th, 02:00 CET NZ Interest Rate Decision.

Wed, 28th, 14:45 CET CA Interest Rate Decision.

Wed, 28th, 19:00 CET US Interest Rate Decision.

Thu, 29th, 14:45 CET EU Interest Rate Decision.

Fri, 30th, tentative JP Interest Rate Decision.

Dollar strengthens ahead of Fed decision as Gold tests key support

The US Dollar is gaining ground ahead of the Federal Reserve's upcoming decision and a busy earnings calendar. Gold is under pressure and approaching a major support zone, while Silver has already broken below a comparable technical area, increasing the risk of further losses. The currency outlook remains mixed, however, as the Canadian and New Zealand Dollars could find support from their respective central bank decisions. USDCAD may extend its decline if the Canadian Dollar maintains its broad-based strength, particularly if the Bank of Canada delivers a hawkish message. NZDUSD could also move higher if the Reserve Bank of New Zealand signals a more restrictive policy stance than markets currently expect. For now, the key question is whether the Dollar's recovery gains momentum or whether central bank expectations and improving risk appetite limit its upside.

Market talk

Risk sentiment is slightly positive, but the broader market picture remains uneven. Bitcoin is holding relatively steady, while altcoins continue to weaken, suggesting that investors remain selective and are reluctant to increase exposure to riskier digital assets. The divergence is worth watching: a sustained recovery in risk appetite could eventually support a broader rebound, but continued weakness in altcoins would indicate that confidence remains fragile.
Oil is trading sideways, with its next move likely to depend partly on the Dollar and the broader market environment. Further Dollar strength could weigh on prices, while a softer Dollar and improving sentiment could help push oil higher. From a technical perspective, a potential cup-and-handle formation points to upside if resistance breaks, although confirmation is still needed. With the Fed decision and major corporate earnings approaching, markets could remain sensitive to changes in interest-rate expectations, company guidance and the outlook for economic growth.

USD/JPY: we sold at 157.60 with SL at 158.50 and open TP.

Tendencies in the markets

Equities sideeays, USD stronger, crypto weak, oil sideways, metals weak, JPY sideways.

Markets in focus

SP500-s, USDJPY-s (focus for the day: s=short / l=long).

Author

Frank Walbaum

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