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USD Resumes Slide Ahead of the Fed


Despite holding its ground for much of the Tuesday session, the greenback
resumed its slide Wednesday, with focus now resting on the Fed rate
decision later today. As a result, the USD index printed new multi-year
in Asia-Pac hours, helping to flatter the likes of AUD, GBP against the
USD, which hit new cycle highs.

At the other end of the scale, Scandi currencies are outperforming, with
EUR/SEK still well within range of the cycle lows last week at 10.2165.

GBP/USD is on track to record its ninth consecutive session of gains
with today's new highs at $1.2977 printed today. The 2.0% 10-dma envelope
lies just ahead at $1.3011.

While the Fed is ultimately likely to adopt outcome-based forward guidance tied
to inflation, more discussion rather than action looks likely this month.

Outside of the Fed, US trade balance & pending home sales numbers are
due as well as earnings from Qualcomm, PayPal, General Electric &
General Motors are on the docket.

MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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