USD gains as markets brace for Fed, GDP data and tech earnings

The US dollar strengthened across major pairs as futures rose ahead of a packed economic calendar featuring the Federal Reserve decision, Q2 GDP data, and earnings from major technology companies. The dollar index climbed 0.2% to 104.50 as traders positioned defensively before the high-impact events. Markets are particularly focused on the Fed's policy statement for clues about September rate cut prospects, with futures pricing in a 68% probability of easing. Q2 GDP estimates point to 2.8% annualized growth, which could reinforce dollar strength if met. The Treasury's quarterly refunding announcement adds another layer of complexity to market dynamics. Risk-sensitive currencies like AUD and NZD underperformed, while safe-haven flows benefited JPY and CHF marginally. The confluence of events suggests potential volatility spikes across major pairs, with traders advised to monitor key technical levels for breakout opportunities following the announcements.