The post DXY fades as markets hold breath ahead of FOMC appeared on BitcoinEthereumNews.com.

The US Dollar Index (DXY) eased around 0.2% on Tuesday, slipping back toward the 99.50–99.60 area after a failed attempt to recapture the psychologically significant 100.00 handle. It was the second straight session of softness following last week’s surge to ten-month highs near 100.54, a move driven by a combination of safe-haven demand from the US-Israel war on Iran, a sharp repricing of Federal Reserve (Fed) rate cut expectations, and the resulting spike in Oil prices. With the Fed’s two-day meeting now underway and the policy statement due at 18:00 GMT on Wednesday, traders are in wait-and-see mode — keeping a lid on fresh directional moves in the greenback. 100.00: The new interim key battleground The technical picture has shifted subtly but meaningfully over the past two sessions. The DXY tagged a cycle high above 100.50 last week before rolling over in a two-bar reversal formation around the 100 handle, a pattern that typically signals exhaustion of the prevailing trend. Tuesday’s inability to reclaim 100.00 reinforces that dynamic. FOMC: The dot plot is the real trade The rate decision itself is a non-event; CME FedWatch assigns a 94% probability to an unchanged outcome. What matters is Wednesday’s updated Summary of Economic Projections (SEP) and the dot plot, which will be the first since the start of the Iran conflict, Crude Oil at uncomfortable highs, and the knock-on implications for inflation. Prior to the conflict, the median dot had pencilled in one 25bps cut for 2026. There is now a credible risk that the Fed removes even that solitary cut from its projections, effectively sending a zero-cuts signal for the year. That outcome would be unambiguously bullish for the US Dollar — and given current positioning, it could trigger a sharp re-extension toward and through 100.00. Conversely, if Powell’s language leans…

---

Filed under: News - @ March 17, 2026 5:38 pm