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FOMC focus keeps the dollar narrowly mixed to softer, Scotiabank says

Scotiabank expects a hold without guidance to weigh on the DXY, with weakness below 101.1 pointing to further near-term declines.

Reported · Written up by our desk · Major Pairs

Scotiabank strategists Shaun Osborne and Eric Theoret said the US dollar is narrowly mixed to softer ahead of the Federal Open Market Committee, with currency swaps implying only a modest chance of a rate hike.

They argued Fed policy is unlikely to change until the central bank’s operating reviews are complete, and said that an FOMC hold without guidance would likely allow the dollar to ease.

The bank highlighted that US Dollar Index weakness below 101.10 would signal additional short-term losses, while noting that downside risk is tied to how the FOMC is handled.

In their broader setup around the meeting, FXStreet also noted investors are watching upcoming Fed events later in the day, with the dollar’s direction expected to influence moves across major pairs.

Latest closeDollar index 101.39 ▼0.1%

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