After experiencing one of its worst weeks of the year, the US dollar is stretched from a technical point of view while the short-term interest rate adjustment has gone as far as it can without resurrecting ideas of a Fed rate cut this year. Given the lighter economic calendar in the coming days, we suspect that the greenback may consolidate ahead of the FOMC meeting that concludes on July 26. The derivatives market shows that a quarter-point hike is seen as a practical certainty. However, even as the US two-year yield jumped back a dozen basis points ahead of the weekend, the dollar drew little support against the ... (full story)