The dollar sees no reprieve in European trading so far
The only major difference between the snapshot at the start of the session and now is that the pound joins the dollar at the bottom of the ranks, and that arguably owes to month-end Buba buying in EUR/GBP rather than any major headline impact.
Other than that, the aussie and kiwi has seen gains ease up a little but pretty much everything is advancing against the dollar in trading so far today.
Equities continue to hint at slightly better tones with US futures up by around 0.7% but European stocks are keeping more mixed and nearer to flat levels though.
And once again, the bond market is failing to give investors any sense of direction as 10-year yields are down 2 bps to 0.59%; continuing to pivot around 0.60% for the most part.
All eyes will now turn towards the Fed policy meeting later. So, what can we expect?
In terms of new policy decisions, it is unlikely we'll see anything new. However, language will be key and the market will scrutinise the statement and Powell's presser for any key hints about what to expect next if the situation in the economy gets better/worse.
Also, keep an eye on the Fed's outlook on the economy as that may send a message about optimism/pessimism which could impact risk and the dollar in the coming sessions.
Otherwise, I would expect the focus to mainly stay on the Fed's commitment to do more if necessary. If they hammer home that point, stocks may build on the rally today and the dollar may not see a similar reversal as it did in US trading yesterday.
