Fed Meeting Looms as US Dollar Holds Ground Amid Geopolitical Uncertainty
The US dollar continues to hold its ground against major currencies ahead of the Federal Reserve's meeting.
The base-case scenario is for interest rates to remain unchanged, but markets are pricing in a possible rate hike, which could influence the direction of the US dollar over the coming weeks.
Geopolitical uncertainty in the Middle East, despite temporary diplomatic efforts, continues to prompt investors to stay cautious and seek the safety of the US dollar.
The USD/JPY has reached multi-year highs near 164.00 and is expected to extend its advance towards 165.00-165.50 if the Federal Reserve delivers a more hawkish outcome or maintains its tone.
Conversely, a move below 163.30 could trigger a deeper correction towards the 162.00-162.60 support area for USD/JPY.