Preview for June FOMC Meeting and Outlook for US Dollar

From dailyfx.com

As we await the conclusion of the June FOMC meeting later today, Fed funds futures are pricing in a 100% chance of a 25-bps rate hike – just as they have since the end of April. The US Dollar (via the DXY Index) is pressing forward for a third straight day ahead of what is essentiallly a guaranteed policy move. As has been the case when front month odds are at 100%, the direction of the US Dollar is not contingent on the Fed raising rates but rather what expectations are set for the path of rate hikes down the line. Currently, rates markets are pricing in additional 25-bps hikes in September and December, with odds pegged at 77% and 51%, ... (full story)