Dollar Strengthens Ahead of FOMC Meeting Amid Oil Price Volatility
The dollar has gained stronger momentum ahead of this week's FOMC meeting and is likely to remain strong on Wednesday.
This comes despite a fragile pause in conflict, with Brent oil prices falling back to $92/bbl, but unless there is a clear de-escalation path, the dollar could continue to strengthen.
Chair Kevin Warsh's opposition to forward guidance may encourage markets to hold dollars as protection against hawkish surprises, and precautionary USD buying ahead of the announcement could weigh on EUR/USD.