Commodities Report: Analysis Update

$USO $GLD $SLV $URA

Hello Traders,

Yesterday’s FOMC meeting confirmed a more dovish shift, with the Fed signaling comfort with easing financial conditions and acknowledging progress on inflation. Markets interpreted the tone as supportive of more rate cuts coming sooner rather than later, which immediately pressured the U.S. dollar lower.

At the same time, the market is pricing a more hawkish stance from the European central Bank relative to the Fed — not because Europe is strong, but because the ECB is pushing back against further easing. This divergence widens the policy gap: a dovish Fed + a less-dovish ECB = a stronger euro and a weaker dollar.