FX Update: The Dollar has traded softer
FX Update: The Dollar has traded softer so far today as markets anticipate a "dovish hike" from the Fed today, being a 25 bp tightening complemented by a signal that policy is going neutral. There has been some speculation that the Fed might even refrain from hiking, though analysts are doubtful this will happen. Stock markets in Asia have been mixed, while S&P 500 futures are showing a gain of 0.6% in the overnight session following a flat performance on Wall Street yesterday. EUR-USD has remained buoyant, holding a narrow range in the upper 1.1300s, just of yesterday's nine-day high at 1.1402. USD-JPY touched a fresh seven-week low at 112.19 in early Tokyo trading, subsequently settling to the 112.30-50 area. Cable continued to make time in the mid-to-upper 1.2600s, holding in a consolidation pattern after a phase of sharp losses left a 20-month low at 1.2476 last week. USD-CAD has settled in the mid 1.3400s, down from the 18-month high the pair yesterday, at 1.3497, which seen concomitantly with fresh major-trend lows in oil prices. WTI crude futures hit a low of $45.79 yesterday, which is the lowest level seen since August 2017.