USD on the front foot ahead of the Fed -The...>

FOREX: USD on the front foot ahead of the Fed

-The greenback is gaining against most others in G10 ahead of the FOMC rate

decision this evening (due 1800GMT), with traders appearing to book profits

following following the decline since the beginning of the week. CNH outperforms

slightly, pressing USD/CNH to levels not seen since March 4th and allowing

USD/CNH bears to target February's 6.6740, the lowest rate since July last year.

The moves at present aren't headline driven, with little newsflow crossing

overnight.

-GBP is the softest major currency headed into the NY crossover, with GBP/USD

falling through yesterday's lows early doors. Unsurprisingly, Brexit progress

remains lacking, with latest reports suggesting PM May is to seek a short delay

to Article 50 (however, the EU are likely to install conditions on such an

extension). GBP/USD may find some support at the Monday lows of $1.3185 from

here on.

-Other than the Fed decision, UK inflation takes focus at 0930GMT. CPI is

expected to rise 0.4% m/m and 1.8% y/y.