US Dollar Strengthens as Markets Await Fed Decision and Key Macro Data

Key Facts

1The U.S. dollar started the trading week higher against all major currencies, with the largest gains seen against the Japanese yen and New Zealand dollar.

2Markets are awaiting this week's Fed interest rate decision, a flood of corporate earnings, and significant U.S. economic data releases.

3Crude oil prices fell about 2% amid diplomatic efforts involving Iran, though geopolitical risks remain due to the Israeli election.

The U.S. dollar started the trading week higher against all major currencies, recording its most significant gains against the Japanese yen and the New Zealand dollar. InvestingLive reported that markets are awaiting the Federal Reserve's interest rate decision this week, alongside a series of influential U.S. economic data releases and major corporate earnings reports. In energy markets, crude oil prices fell approximately 2% amid diplomatic efforts involving Iran, despite lingering geopolitical risks tied to the Israeli election.

Recent economic data showed an improvement in national activity, with the Chicago Fed National Activity Index reaching 0.07 on October 26, 2026, exceeding previous estimates. This performance comes as markets prepare for the Durable Goods Orders report on October 27, which is forecasted to grow by 1.5%. Additionally, the Michigan Consumer Sentiment index was recorded at 48 on October 23, 2026, reflecting the general cautious sentiment ahead of key policy meetings.

The Federal Reserve is scheduled to announce its interest rate decision on October 28, 2026, with forecasts maintaining the rate at 4%. Investors are also looking forward to the release of the quarterly GDP growth rate and the Core PCE Price Index on October 29, 2026, which will be critical in determining the dollar's trajectory and future monetary policy.

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