Dollar and Tech Futures Plummet Ahead of FOMC Meeting

USD Index Futures Extend Losses, NASDAQ Futures Down 2%
The USD Index Futures continued their downward trend on Monday, extending losses from the previous session. Meanwhile, NASDAQ Futures also slipped, declining by approximately 2% as investors remained cautious ahead of the Federal Open Market Committee (FOMC) meeting later this week.

The USD Index Futures, which track the dollar's strength against a basket of six major currencies, fell by 0.5% to 102.50. This decline comes amidst growing concerns about the global economic outlook and the potential impact of the FOMC meeting on interest rates. The index has been volatile in recent weeks, with investors closely watching developments in the US and global economies.

NASDAQ Futures also experienced a significant drop, with the tech-heavy index falling by around 2%. This decline can be attributed to a combination of factors, including the ongoing uncertainty surrounding the FOMC meeting, geopolitical tensions, and concerns about the global economic slowdown. The NASDAQ has been particularly sensitive to these factors, given its heavy exposure to technology stocks.

The upcoming FOMC meeting, scheduled for January 29, is expected to be a key event for investors. The committee is widely anticipated to provide guidance on the future direction of monetary policy, which could have significant implications for both the USD Index Futures and NASDAQ Futures. Investors are likely to be closely watching the meeting for any indications of a change in the Fed's stance on interest rates and quantitative easing.

In addition to the FOMC meeting, investors are also keeping a close eye on developments in the global economy. The ongoing trade tensions between the US and China, as well as the potential impact of the coronavirus outbreak on global supply chains, have contributed to a sense of uncertainty in the markets. These factors, combined with the potential for a slowdown in economic growth, have led some investors to seek safe-haven assets like gold and US Treasury bonds.

The USD Index Futures and NASDAQ Futures are likely to remain volatile in the near term, as investors continue to grapple with the various challenges facing the global economy. The FOMC meeting, in particular, is expected to be a critical event for investors, with the potential to shape the direction of the markets in the coming weeks and months.