The US Federal Reserve is set to announce its latest monetary policy decision on Wednesday, with markets widely expecting a quarter-point interest rate hike. According to FX Street, the USD/CAD currency pair extended its gains for a fifth straight day on Tuesday, reaching near a two-week high as investors positioned themselves ahead of the Fed announcement.
Precious metals also reacted, with silver trading around $63.40 per ounce, up 0.28% on Tuesday as traders awaited the Fed’s move. Meanwhile, the Dow Jones Industrial Average hovered just under 52,000 points, down approximately 450 points, with futures markets pricing in a 92.5% probability of a 0.25% rate increase.
For Japanese investors, the Fed's decision remains a crucial factor influencing USD/JPY and cross-market volatility, particularly as global equity and commodity markets adjust to shifting US monetary policy expectations.