Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
South Korea Signals Possible Interest Rate Hike as Inflation Remains Elevated 
China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
ECB Keeps July Rate Options Open Amid Iran War Energy Price Risks 
BOJ Rate Hike Expected to Boost Yen, Impact USD/JPY and Nikkei 
Indonesia Plans Higher Asset Yields to Boost Rupiah and Restore Investor Confidence 
RBI Hits Pause as Geopolitical Storm Clouds Gather 
BOJ Raises Interest Rates to 1% as Inflation Pressures Persist 
Supreme Court Backs Lisa Cook, Defends Federal Reserve Independence Against Trump Firing Attempt 
The USD has appreciated on a trade weighted basis in January so far; however, the appreciation in USD is mainly due to weakness in other currencies rather than specific factors that causes the USD to appreciate. The greenback appreciated on the back of declining commodity prices and rising risk aversion sentiments affecting EM currencies. The markets expect only one rate hike for this year as the global financial turmoil continues to prevail in the market.
Markets will be focused upon how FOMC evaluates the current market developments and what conclusions will be drawn for the March meet. This might have a limited effect on the dollar as markets expect a dovish stance from FOMC announcements. The FOMC's stance today on the possibility of a rate hike in March will provide guidance on interpreting the Fed's future developments
