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 . 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 Re...
