European markets are seeing a slight dip this morning, while US futures are showing very modest gains as investors eagerly await the Federal Open Market Committee’s (FOMC) upcoming policy announcement. With the FOMC set to deliver their statement and hold a press conference later today, market participants are keeping a close watch for any signals about future interest rate moves or economic projections.

In currency markets, the US dollar is slightly softer today, while the New Zealand dollar (Kiwi) is outperforming. The Japanese yen (JPY) is also showing strength as traders seek safer assets amid the uncertainty around central bank decisions.

On the bond front, yields are hitting lows, with UK Gilts underperforming following an inflation report that came in hotter than expected. The UK’s core and services inflation printed higher on a year-over-year basis, raising concerns about the Bank of England’s future policy stance and adding pressure to the bond markets in the region.

Commodities are also making headlines. Crude oil prices are hovering near their lows, taking another leg down amid reports suggesting that Russia might delay planned oil export cuts. Meanwhile, gold (XAU) and base metals are gaining, benefiting from the softness in the US dollar and uncertainty in the broader markets.

Looking ahead, the economic calendar is packed with key events. In the US, Building Permits data will offer insight into the housing market, but all eyes will be on the FOMC’s policy announcement and subsequent press conference. Beyond that, the Bank of Canada (BoC) will release its minutes, and Brazil’s Central Bank (BCB) is also set to announce its policy decision. On the corporate side, earnings from General Mills are expected.

Stay tuned for more market reactions as the day unfolds, especially following the FOMC meeting, which could set the tone for global markets in the days ahead.