The USD index gained foothold around the 92.50 mark, halting the two-day sell-off ahead of the Fed event. Overall, FX and equities stay range-bound suggesting market prefer to take wait-and-see stance before the major Fed updates. However, it's quite possible that the Fed will prefer to take a timeout on major policy news till the Jackson Hole conference in August, keeping an eye on the spread of the delta strain, which has recently begun to add uncertainty in economic forecasts. Nevertheless, in my opinion, the balance of risks for the dollar is shifted towards weakening, since strong buy-the-dip forces we saw last ... (full story)