The Dollar falls to 4-year lows ahead of the FOMC– North American session Market wrap for January 27

Ben Graham · January 27

Log in to today's North American session Market wrap for January 27

The session was already a volatile one before Donald Trump decided to spice things up even more right ahead of the North American close.

Despite an ongoing rout in the US Dollar, the President said, "The value of the dollar [..] is doing great."

The Dollar Index (DXY), which had already corrected by 3% since last Monday, just dropped another percent to 4-year lows, now below 96.00.

As expressed in our in-depth US Dollar analysis, a lack of participants to absorb fast-paced swings in supply and demand can accelerate such moves even further – a perfect example of which is today's action.

The Dollar falls to 4-year lows ahead of the FOMC– North American session Market wrap for January 27 - ExpertFX School — Dollar Index (DXY) 2H Chart – Source: TradingView

Pre-FOMC sessions can be boring, rangebound across asset classes, as traders await new Fed developments.

Or they can be like today's bonanza, where a dollar melt fuels wild moves around Markets.

Metals were once again right in the middle of the intensity, with the precious assets correcting sharply (Gold held well) before they danced to fresh highs around Trump's comments – The Bullion marked another daily record at $5,185.

My hunch still tells me today's action could be extreme, leading to swift post-FOMC reversals as Powell attempts to calm things down.

Participants are still awaiting the announcement of the next Fed Chair. In the meantime, expect usual volumes to return to the Market after tomorrow's Fed Decision at 14:00 (and rise particularly during the Press conference at 14:30 E.T.).

Iran also remains a concern that traders are keeping in mind – WTI (US) Oil reached new 2026 highs in the current session ($62.70) as things could heat up at any time.

Discover:

Today marked the pursual of rebalancing Stock flows with the high-expectations Mag 7 earnings approaching by the minute.

The Dow Jones is marking somewhat of a top, dropping 1% and giving up the same percentage to the Nasdaq. The S&P 500 on the other hand reached some new all-time highs just today!

The Industrial Average did outperform its peers throughout the entire end of 2025, so profit-taking right ahead of the FOMC isn't anything to be concerned of.

Still, keep a close eye on tomorrow's Index action after the FOMC and the key earnings releases – Thursday's open and this weekly close will be watched very closely.

Cross-Assets Daily Performance

Today's cross-asset action was a brutally violent one – Late position closes can have such dramatic effect on price swings, particularly as the US President keeps surprising traders.

Metals and Cryptos stand on top of today's movement at a heavy cost for the Dollar – Expect tomorrow to remain very spicy and spiky!

A picture of today's performance for major currencies

FX volatility is back, and looking at the charts, it doesn't look like it's going away.

The Swiss Franc is on top of the board as it reaches 15 year highs against the greenback.

All other FX Majors are up above 1% as the dollar cracks well lower.

Major Earnings in Tomorrow's session

Stock traders are ready for a banger session tomorrow: Microsoft, Meta, ASML, A&T are among the major reporters.

The most important earnings will be released after the close, so suit up for a long session tomorrow.

A look at Economic data releasing throughout today and tomorrow's sessions

This evening session could be an interesting one for FX traders, particularly Aussie aficionados:

Late Tuesday is Asia-focused, with BoJ minutes and Australian CPI/trimmed mean, key for JPY and AUD positioning.

Wednesday however is where traders are made.

Canada kicks it off with the BoC rate decision, statement and press conference at 9:30 A.M. E.T., followed by the FOMC decision (14:00), statement and Powell presser at 14:30. Expect volatility to spike and concentrate around these windows.

Between releases, markets may stay cautious and range-bound as traders avoid heavy positioning ahead of central bank risk, except if more chaos similar to today occurs.

Safe Trades, keep a close eye on the Middle East!

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