Dollar holds at the highs for the day, gradually extending gains
EUR/USD is marked down by over 0.5% to 1.1545, sticking near the large option expiries at 1.1525-50. That should likely keep price action in check before rolling off later in the day with the October lows @ 1.1525-29 in focus.
Meanwhile, the pound is also looking soggy with cable down 0.5% to 1.3617:
Sellers are keeping near-term control on a push back below its 100-hour moving average (red line) earlier today with some minor support seen @ 1.3600-05 next.
The BOE is a key focus later but on the balance of things, the risks might be skewed towards a disappointment for the pound either which way:
While a rate hike may give the quid a boost in the immediate reaction, I fear that it will only be a brief one as policymakers are likely to reiterate a limited and gradual approach to tightening further.On the flip side, if the BOE doesn't deliver a rate hike, I can see that upsetting the pound so the risks are skewed towards either fading the initial pound spike or just some light selling in the aftermath as rate hike bets get pushed to December/February.
Elsewhere, AUD/USD is down 0.3% to 0.7420 at the lows for the day while NZD/USD is also trading down by nearly 0.5% to 0.7123 and erasing their respective post-FOMC advance.
