It shouldn't come as much of a surprise to see that the dollar momentum is still hanging in there ahead of the Fed. The usual suspects are at it again with bond yields looking to inch higher and the greenback is keeping steadier for the most part.
It is all about the FOMC meeting decision tomorrow to set the tone for what comes next. As for now, major currencies aren't showing much appetite to really break out in any significant manner.
EUR/USD is down slightly to around 1.0500 while USD/JPY is looking to keep above 130.00 on the day so far. Meanwhile, GBP/USD is up slightly around 1.2530 levels as buyers are continuing to fend off a firm break below 1.2500 - for now at least.
The aussie is a modest gainer though but has erased most of its post-RBA gains already. AUD/USD jumped from 0.7090 to 0.7147 but is now sent back down to 0.7094 in European morning trade:
As mentioned here, the post-RBA gains may be fleeting and upside potential is rather capped considering that the central bank is playing it coy in trying to manage expectations for future meetings.
The ball is over to the Fed's court now.
