Markets begin the week on a cautious note as traders brace for a packed schedule of central bank meetings, featuring the Federal Reserve, the Bank of Japan, and the European Central Bank. The US Dollar Index (USDX) holds near 98.80 after retreating from 99.28, while gold steadies around USD 4,190 following a modest correction.<\/p>\n\n\n\n
The coming days could bring heightened volatility if the Fed delivers its much-anticipated 25\u201350 basis-point rate cut, and if the Bank of Japan hints at a possible lift-off in December. Meanwhile, equity markets will keep a close watch on the quarterly earnings reports from major tech giants: Apple, Microsoft, Alphabet, Meta, and Amazon, which could set the tone for broader market sentiment.<\/p>\n\n\n\n
Investors are largely expecting a 25-basis-point rate cut from the Fed at its October meeting, though a 50-basis-point move remains on the table. The upcoming Advance GDP figures (forecast at 3.0% quarter-on-quarter versus 3.8% previously) and Core PCE data (expected at 0.2% month-on-month) will be key in determining whether the Fed\u2019s dovish stance remains warranted.<\/p>\n\n\n\n
A softer tone from the Fed could add further downward pressure on the dollar while supporting gold and risk assets. However, traders may stay restrained until Chair Jerome Powell\u2019s post-meeting comments shed light on how aggressive the easing cycle might be.<\/p>\n\n\n\n
Japan\u2019s inflation remains above target, with September\u2019s core CPI holding at 2.9% year-on-year and the October services PMI coming in at 52.4, evidence that domestic demand remains firm. On the other hand, manufacturing activity continues to lag, with the PMI slipping to 48.3, justifying the Bank of Japan\u2019s cautious tone.<\/p>\n\n\n\n