Today we can observe some dollar weakness as investors geared up for a US Federal Reserve decision which will be released at 7:00 pm BST. Market expects 75 bp rate hike, versus earlier speculations of a bigger 100bp increase, as it tries to address conflicting concerns of high inflation and slowing growth. Investors will mainly focus on Powell’s comments for hints regarding the likely path for US monetary policy and any hawkish remarks could stoke another dollar rally.
From a technical point of view, the USDIDX dollar index continues to move higher. However should the bigger downward correction occur, the key support is located around the support at 105.30, which is marked with the lower limit of the 1:1 structure and earlier price reactions. Source: xStation5
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