Dollar holds with interest rate decision in focus
The US dollar held steadily against most major currencies on Wednesday, as focus shifted to the Federal Reserve and the interest rate decision.
The US retail sales index rose 0.6% in August, its third straight monthly increase, but came lower than forecasts of 1.1%, vs. 0.9% in July.
The US Federal Reserve will announce its rate decision later today, which is widely expected to keep the rate near zero within its efforts to support the economy in the fight against the coronavirus crisis.
Fed Chairman Jerome Powell will hold a press conference following the decision to comment on monetary policy and the latest economic developments.
The Fed kept the interest rate unchanged near zero and pledged on taking all the necessary tools and measures until the economy recovers and returns to its growth path.
The dollar index held against a basket of currencies at 93.05 points as of 18:30 GMT, after it hit a high of 93.1 and a low of 92.7.
Federal Reserve plans to keep rates near zero until 2023
The US Federal Reserve signaled that it plans to keep the interest rate near zero unchanged at least until the end of 2023.
This comes within the Fed's efforts to support the US economic recovery from the coronavirus impact.
The Federal Reserve decided to hold the interest rate between zero and 0.25% unchanged in a widely expected move.
The Fed also stated today there will no be interest rate hikes before 2024.
The bank raised its estimates for the GDP in 2020, but lowered its forecasts for the unemployment rate to 7.6% due to the rapid recovery of the economy during this summer.
US crude inventories fall over 4 million barrels
The US Energy Information Administration (EIA) showed today that the US crude inventories fell 4.4 million barrels to reach a total of 496 million barrels during the past week, missing analysts' forecasts of a drop by 1.8 million barrels.
The gasoline stockpiles fell 400,000 barrels to a total of 231.5 million, and distillate stockpiles rose 3.5 million barrels to a total of 179.3 million.
While the American Petroleum Institute (API) showed yesterday in preliminary data that inventories fell around 9.5 million barrels during same period.
Palladium rises as dollar slips ahead of Fed rate decision
Palladium prices rose on Wednesday, as the US dollar slipped against its major peers, amid anticipation for the Federal Reserve’s decision later today.
The US Federal Reserve will announce its rate decision later today, which is widely expected to keep the rate near zero unchanged.
Otherwise, the World Trade Organization stated that the US tariffs imposed on Chinese goods violate global regulations and are not justified.
US President Donald Trump criticized the decision, and said that he would discuss with his team a response to the ruling in favor of China.
The dollar index fell against a basket of currencies by 0.1% to 92.9 points as of 14:51 GMT, after hitting a high of 93.1 and a low of 92.7.
Palladium December futures rose 0.2% to $2,149.3 an ounce as of 14:52 GMT, after hitting a high of $2,438 and a low of $2,377.7.