Central banks dominate calendar this week: Will Fed surprise?

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Central banks dominate calendar this week: Will Fed surprise?U.S. Dollar Currency IndexTVC:DXYBlackBull_MarketsA pack of central bank decisions is set to drive market direction this week, with the Bank of Japan (Tuesday), Federal Reserve (Wednesday), Swiss National Bank (Thursday), and Bank of England (Thursday) all scheduled to announce their latest interest rate decisions. The Federal Reserve will, of course, take center stage. Despite President Trump’s continued call for a 100-basis point rate cut, Fed officials are widely expected to keep rates unchanged. However, softer-than-expected CPI and PPI data from last week may provide scope for a surprise. The U.S. Dollar Index (DXY) is trading just above the key support zone at 98.00, a level not seen since early 2022. A decisive break below this area could open the door to further downside, potentially targeting the 96.00 region. However, a surprise from the Fed could trigger a rebound toward the 100.50–101.00 resistance band.