Dollar pushes higher in anticipation of the Fed later in the day

Perhaps some positioning flows ahead of the key risk event are playing out now as we get into North American trading, as the dollar is making some headway across the board.

We are also seeing a more risk-off tone as European indices are extending losses and US futures are accelerating to the downside as well. Nasdaq futures have now turned red after having traded higher throughout the session.

EUR/USD is now down to 1.2116 as sellers seize near-term control but is contesting some near-term support at around 1.2110-18 for the time being:

EUR/USD H1 27-01

Elsewhere, GBP/USD has also eased to a fresh session low of 1.3708 while commodity currencies are leading losses amid a softer risk tilt in the European morning.

AUD/USD H1 27-01

AUD/USD is tracking back below its key hourly moving averages and looking towards 0.7700 again. Further support is seen closer to 0.7690 and then 0.7660-70 next.

NZD/USD H1 27-01

Meanwhile, NZD/USD is also easing back towards 0.7200 and a potential test of its 100-hour moving average (red line) at the moment.

Looking to the Fed, I still can't see them being anything but dovish later in the day and the simplest case may be for a push lower in the dollar when all is said and done.

However, as mentioned earlier here, it might not be as straightforward a reaction if they talk up economic prospects in the coming months amid vaccine optimism.