Dow Jones futures gain 0.11% to trade around 53,000 during European trading hours on Wednesday. Meanwhile, S&P 500 futures rise 0.16% to trade near 7,480, though Nasdaq 100 futures decline 0.17%, trading near 27,870, respectively.

Geoff Yu at BNY reports that global equity allocations have reached a record share of portfolios, with United States (US) markets dominating both equity and fixed-income holdings.

The US Dollar (USD) trades marginally lower in the European trade on Wednesday, reflecting caution ahead of the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT.

MUFG’s Lloyd Chan expects the Federal Open Market Committee (FOMC) to deliver a hawkish hold, with the Federal Reserve (Fed) keeping rates unchanged while stressing elevated inflation risks. He notes softer recent US data but highlights that markets still price some probability of a July hike.

The United States Dollar Index (DXY), which tracks the Greenback against a basket of currencies, is seen consolidating below the 101.50 level during the Asian session as traders await the outcome of a two-day FOMC meeting, due later this Wednesday.

The Dow Jones Industrial Average trades just short of 52,900 on Tuesday, higher by close to 700 points and 1.3%, roughly 450 points beneath the record it set in the first week of July. Taken alone, that reads as a broad risk rally.

The Greenback, when tracked by the US Dollar Index (DXY), abandons the area of monthly peaks and recedes toward the 101.30 zone on turnaround Tuesday.

MUFG’s Lee Hardman notes the US Dollar (USD) has reversed early-week losses and is trading near year-to-date highs ahead of tomorrow’s Federal Open Market Committee (FOMC) meeting.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is losing ground after three days of gains and trading around 101.50 during the Asian session on Tuesday.

On Monday, US President Donald Trump grabbed the headlines as investors awaited monetary policy meetings by three of the eight major central banks, led by the Federal Reserve, the Bank of England, and the Bank of Japan.

The Dow Jones Industrial Average trades near 52,200, up around 250 points, after a session that handed it the month's cleanest bullish catalyst and then took most of it back.

BNY’s Geoff Yu says softer June Consumer Price Index (CPI) has reduced immediate inflation concerns, but limited Fed guidance continues to support policy uncertainty and US Dollar (USD).

MUFG’s Lee Hardman notes the US Dollar has softened as Middle East tensions ease and Brent Oil retreats below USD90, reducing energy-driven inflation fears. The correction in energy prices has slightly lowered market-implied odds of a near-term Fed rate hike.

Brown Brothers Harriman’s (BBH) Elias Haddad expects a hawkish Federal Reserve (Fed) hold and a goldilocks-like United States (US) macro backdrop to keep the US Dollar (USD) supported in coming days.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is losing ground after posting minor losses in the previous trading day, trading around 101.20 during the Asian session on Monday.

The index that spent this week absorbing a war premium trades near 52,000 on Friday, around 325 points to the good side, on the strength of a wire report that its own three sources undercut in the same breath.

Scotiabank strategists Shaun Osborne and Eric Theoret say broad US Dollar (USD) gains are moderating as United States (US) yields retreat and risk appetite improves after a tech-led selloff.

MUFG’s Derek Halpenny highlights that rising US and global bond yields, elevated geopolitical risks and higher energy prices are supporting the US Dollar.

ING’s Chris Turner notes the US Dollar (USD) is supported as higher energy prices fuel expectations of further central bank tightening, with markets pricing more hikes from the European Central Bank (ECB) and Bank of England (BoE).

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, drifts lower during the early European session on Friday and erodes a part of the previous day's strong gains back closer to the monthly high.

Dow Jones futures gain 0.35% to trade around 52,070 during European trading hours on Friday. Meanwhile, S&P 500 futures and Nasdaq 100 futures advance 0.21% and 0.08%, trading near 7,460 and 28,650, respectively.

Lloyd Chan at MUFG notes that US rate expectations remain volatile, with markets now pricing further Federal Reserve (Fed) tightening this year. Rising Treasury yields have pushed the US Dollar (USD) higher, lifting the US Dollar Index (DXY).

The US Dollar (USD) clings to the previous day’s gains in the Asian session on Friday, as surging oil prices due to intensified Middle East energy supply risks have revived Federal Reserve (Fed) interest rate hike expectations.

Here is what you need to know for Friday, July 24:

The Dow Jones Industrial Average trades around 600 points lower on Thursday, down 1.1% near 51,600 in a session whose high sits within a handful of points of the opening print.

US President Donald Trump said he is close to deciding whether to launch a new military operation against Iran, according to Israel’s N12. Trump said he is “considering a massive attack greater than anything before,” adding that Israel would join the operation “within two minutes” if requested.

Brown Brothers Harriman’s Elias Haddad notes that the US Dollar is holding on to most of its weekly gains as US Treasury yields remain elevated.

Dow Jones futures lose 0.56% to trade around 52,160 during European trading hours on Thursday. Meanwhile, S&P 500 futures and Nasdaq 100 futures decline 0.54% and 0.74%, trading near 7,500 and 28,960, respectively.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 101.00 in the early European trading hours on Thursday. The DXY weakens amid improved risk sentiment.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is losing ground for the second consecutive day, trading around 101.00 during the Asian session on Thursday.