Markets Get Turbulent Awaiting Key FOMC Moment!

<p>&nbsp;The US dollar dipped slightly in the European session, but remained steady at around six-month highs against most major currencies.</p><p><br /></p><p>This is shown on the dollar index which measures the performance of the greenback dollar still holding above the 105.00 price level.</p><p><br /></p><p>Market movement as a whole is still slow as investors look forward to this week's focal event which is the policy meeting of the 4 central banks.</p><p><br /></p><p>The Federal Reserve (Fed) will begin its two-day meeting tonight which will conclude with an interest rate decision early Thursday morning.</p><p><br /></p><p>According to CME FedWatch Tools, the market still expects the Fed to keep interest rates unchanged, but Chairman Jerome Powell's follow-up statement will serve as a guide.</p><p><br /></p><p>Meanwhile, the yen retested a 10-month low of 147.89 against the greenback as investors expect the Bank of Japan (BOJ) to exit its loose policy at Friday's policy meeting.</p><p><br /></p><p><br /></p><p>The pound remains stuck at a 3-month low against the US dollar ahead of the release of UK inflation data on Wednesday which is expected to rise again in August.</p><p><br /></p><p>A day after that, the Bank of England (BOE) will hold a meeting which is expected to be the last interest rate hike by the central bank.</p><p><br /></p><p>Meanwhile, the Aussie and New Zealand dollars rose slightly following the decline of the US dollar at the start of the European session. China's main lending rate (LPR) decision tomorrow morning will be the focus of investors which could be the driving force behind the two currencies.</p><p><br /></p><p>On the other hand, the dollar loonie extended its strengthening to a fresh five-week high against the US dollar ahead of the release of Canadian inflation data tonight.</p><p><br /></p><p>The loonie's strengthening was supported by oil prices hitting a fresh 10-month high, with benchmark Brent crude oil higher at $95.25 a barrel while US WTI firmed at $92.46 a barrel.</p>