US Dollar Index: Range trading, with a soft bias in the near-term – Scotiabank

USD is narrowly mixed versus majors as markets digest the FOMC decision. Economists at Scotiabank expect the US Dollar Index (DXY) to remain stable.

Fed outcome largely in line with market expectations 

“The overall outcome was largely in line with market expectations and priced in; as such, the USD is likely to remain soft but, on the basis of current interest rate differentials, it looks close to fair value in broad terms at this point.”

“If a further, major decline is unlikely at this point, a significant rebound is unlikely.”

“Range trading, with a soft bias appears likely for the DXY in the near-term.”