The coronavirus situation in Europe is getting worse, and it looks like the third wave has begun in France and Germany.
This followed the Robert Koch Institute warning earlier Tuesday that coronavirus infections are spreading exponentially in Germany, up 20% in the last week. Is this ever going to end?
Later in the evening, the two-day FOMC meeting will conclude. The US central bank is scheduled to release new economic, inflation, and interest rate forecasts and will likely acknowledge stronger growth in 2021.
Moreover, investors will be paying attention to how the Fed handles rising yields amid soaring inflation expectations. The Fed's rate expectations will be under scrutiny as well. Overall, it is a crucial meeting, and volatility should be elevated afterward.
In the FX, the greenback edged higher, with the EURUSD pair dropping below 1.19. The USDJPY pair defended the 109 threshold. The greenback will be volatile after the FOMC decision as well.