Dollar Support Hinges on Hawkish Hold from Federal Reserve

The Federal Open Market Committee is expected to hold its target range for the federal funds rate steady at 3.50%-3.75% today, according to Brown Brothers Harriman's Elias Haddad.

This would be a fifth consecutive meeting with no change in interest rates.

Despite a 30% chance of a 25-basis-point rate increase priced into fed funds futures, BBH sees an initial pullback in the US Dollar if the Fed holds steady.

However, the firm anticipates a quick rebound in the USD if the decision is accompanied by a hawkish policy message.