⚠️ Today, traders are focusing on the meeting of the Federal Reserve System (FRS). The US regulator is expected to keep the key interest rate at the previous level of 4.5%;

📰 According to Bloomberg, the European Union (EU) plans to impose additional tariffs on US imports worth about €100 billion if a trade agreement cannot be reached;

🇺🇸 US Secretary of State Scott Bessent said on Tuesday that the US is actively negotiating with 17 trading partners;

🇩🇪 German conservative leader Friedrich Merz was elected Chancellor of Germany;

🛢According to the American Petroleum Institute (API), US oil inventories fell by 4.49 million barrels last week against the forecast for a decline of 2.5 million barrels.

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#dxy

💵 The dollar index (DXY) is trading at 99.40.

📰 Today, the focus of traders' attention is the meeting of the Federal Reserve System (FRS), the results of which will be summed up at 18:00 GMT. The Fed is expected to leave its key interest rate unchanged at 4.25-4.50%, balancing signs of lower inflation and a resilient labor market with growing uncertainty over US trade policy.

📣 Market participants will be closely watching Fed Chairman Jerome Powell’s comments, especially against the backdrop of escalating trade tensions, a weak US economy and political pressure from President Trump to cut rates.

📉 If Powell chooses to stick to “soft” rhetoric, pressure on the dollar may increase.

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📹 What is Stop Out?

🏛 The Federal Reserve System (FRS) kept its key interest rate unchanged at 4.5% following its meeting on Wednesday;

📣 Fed Chairman Jerome Powell said that the Fed does not intend to rush to lower the key interest rate;

📰 US President Donald Trump said that he is not ready to reduce the 145% tariffs imposed on China in order to facilitate negotiations on a trade deal;

⚠️ Trump said in Truth Social that he will announce a major trade deal on Thursday;

🛢 According to the Energy Information Administration, oil inventories in the US last week fell by 2 million barrels, compared to the forecast for a decline of 2.5 million barrels.

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#xauusd

🥇 The XAU/USD pair is trading at $3,340 per ounce.

🏛 Following yesterday's Fed meeting, US Federal Reserve Chairman Jerome Powell said that the US economy is currently showing signs of resilience. However, Powell expects the actual impact of tariffs and heightened uncertainty to impact economic performance later this year. The Fed also kept interest rates unchanged in the 4.25-4.50% range, confirming that a rate cut is not expected until late summer. Such rhetoric supported the dollar.

⚠️ In addition, market participants expect the US to announce a trade deal with one of the G10 countries today, which will be the first trade agreement since the US sectoral tariffs came into effect in early April. Thus, easing economic uncertainty may put additional pressure on safe haven assets.

📉 Given the above, the XAU/USD pair retains downside potential.

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