US Dollar Remains Biased Lower Before Tomorrow’s FOMC Meeting

Talking Points:

– The Federal Reserve will hike rates 25-bps tomorrow, but given that the event is 100% priced in per Fed funds futures, the US Dollar needs something else to spark a rebound.

– The technical structure for the US Dollar is pointing lower in the near-term amid a strengthening bearish momentum profile.

Retail trader sentiment towards the US Dollar is now bearish as traders sell rallies in EUR/USD and GBP/USD.

See our longer-term forecasts for the US Dollar, Euro, British Pound and more with the DailyFX Trading Guides

The US Dollar (via the DXY Index) is trading lower following the daily hammer established yesterday, which hinted at a possible rebound. Alas, with the DXY Index falling back after another test of resistance at the late-August lows, losses are once again taking shape. It’s worth noting that the drop in the US Dollar is occuring while the US Treasury 10-year yield moved up past 3.100%, a fresh yearly high.

For US Dollar traders, nothing is more important over the next day than what happens at tomorrow’s Federal Reserve policy meeting. It is essentially universally accepted that the FOMC will hike rates by at least

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