Goldman Sachs are watching the FOMC dot plot for near-term USD direction

As a reminder, the FOMC statement is at 1900 GMT and Chair Powell speaks following at 1930 GMT.Earlier preview here:

• Moody's says the Fed's FOMC will be walking a fine and dangerous line this week (preview)

Goldman Sachs:

• The currency's near-term direction will likely be determined by the Fed: if the "dot plot" at this week's FOMC meeting shows a two-hike median for 2022 we may see the recent weakness extend while a baseline of three or more hikes for 2022 would likely result in a return to USD appreciation
• Beyond this month, incoming inflation data will likely set the course for the Dollar. There is a wide range of possible outcomes. In our baseline outlook—which envisions three Fed rate hikes next year alongside solid global growth—we see a range-bound USD vs EUR and most other G1Os, but decent gains vs USD for a number of EM crosses

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