Fed Hold and Iran Conflict Spark Volatility in Commodities
The Federal Reserve's decision to hold interest rates at 3.50 percent, 3.75 percent for a fifth straight meeting had a mixed impact on commodity markets last week.
The dollar initially surged to a one-month high of 101.6 ahead of the FOMC decision, but reversed course to post its worst weekly performance in three months, falling 1.6 percent.
US Q2 GDP slowed to a 1.5 percent annualised pace, and June PCE inflation eased, reducing the urgency for near-term tightening, while the hawkish vote split with three members pushing for an immediate hike kept the recovery firmly capped.
Crude oil swung wildly due to conflict developments, but ultimately closed lower despite a 20 percent monthly gain. The week ahead carries acute escalation risk, with US officials confirming plans for fresh strikes on Iran as soon as this weekend.