We’ve finally made it to Fed day. After the rather apathetic start to the week, perhaps things might start to pick up after we get to the main event later today. But for now, broader markets remain rather subdued especially in the major currencies space. Here’s a snapshot of dollar pairs currently:
We’re seeing less than 10 pips or 0.1% change among dollar pairs, with the ranges for the day being extremely narrow.
There should be an extension of that during European trading but once again, it is likely without much direction. That being said, there is the UK CPI data to work through and that could provide some call to action before we get to the Fed.
The bond market remains a key spot to watch in all this as 10-year Treasury yields are looking to hold above 4.36% at its highest levels since 2007. And a further breakout in yields could help to underpin the dollar through the week, but needs validation from the FOMC meeting decision of course.