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US Dollar Rises Early Wednesday Ahead of FOMC Meeting Announcement

BY MT Newswires | ECONOMIC | 07:35 AM EST

07:35 AM EST, 01/28/2026 (MT Newswires) -- The US dollar rose against its major trading partners early Wednesday, except for a decline versus the Canadian dollar, as the focus turns to the Federal Open Market Committee's rate announcement at the conclusion of its two-day policy setting meeting at 2:00 pm ET and Federal Reserve Chairman Jerome Powell's press conference at 2:30 pm ET.

The CME's Fed Watch Tool currently shows a 97.2% chance being priced in for no change to the current target range of 3.50% to 3.75% and a 2.8% chance of a 25 basis point reduction to a range of 3.25% to 3.50%.

Prior to that, weekly EIA crude oil stocks inventories are due to be released at 10:30 am ET.

Earlier Wednesday, the Mortgage Bankers Association said mortgage applications declined in the week ended Jan. 23 after a large gain in the previous week. An increase in average 30-year mortgage rates pushed both refinancing activity and purchase applications lower.

Markets are also digesting comments from US President Donald Trump on Tuesday that he is not concerned about the dollar's recent slide and that the dollar is "doing great."

A quick summary of foreign exchange activity heading into Wednesday:

EUR/USD fell to 1.1970 from 1.2037 at the Tuesday US close but was above a level of 1.1897 at the same time Tuesday morning. There are no Eurozone data on Wednesday's schedule, but European Central Bank member Isabel Schnabel is due to speak at 1:00 pm ET. The next European Central Bank meeting is scheduled for Feb. 5.

GBP/USD fell to 1.3780 from 1.3842 at the Tuesday US close but was above a level of 1.3713 at the same time Tuesday morning. There are no UK data on Wednesday's schedule. The next Bank of England meeting is scheduled for Feb. 5.

USD/JPY rose to 152.5098 from 152.3205 at the Tuesday US close but was below a level of 153.6660 at the same time Tuesday morning. There were no Japanese data released overnight. The next Bank of Japan meeting is scheduled for March 18-19.

USD/CAD fell to 1.3561 from 1.3578 at the Tuesday US close and 1.3705 at the same time Tuesday morning. The Bank of Canada is expected to maintain its policy rate in its meeting announcement at 9:45 pm ET. A press conference follows at 10:30 am ET. There are no Canadian data on Wednesday's schedule.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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