FxWirePro: Daily Commodity Tracker - 21st March, 2022 
USD bulls in charge, ahead of FOMC meeting.
- The chart clearly shows that USD has found support from the rising trend line that has been in place since the end of January. USD found support yesterday, and now, bulls are charging higher.
- However, the trend line may fail to support USD, if the FOMC announcements turn out to be more dovish than expected. The median expectation is that the FOMC would reduce its rate forecast by at least 25 bps.
Declining yields remain a major threat to the USD.
- U.S. 2-year yield, which is one of the most influencing factors for the USD has shed more than 10 bps since the beginning of March, whereas yields on German bonds were broadly unchanged and Gilt yields moved higher.
What the Federal Reserve will do today?
- Fed is not expected to take any actions in terms of policy actions, but, FOMC will release economic projection materials, along with interest rate forecast.
