USD on the defensive as FOMC rate meeting approaches

t's been a Cablelicious week for GBP/USD, having rallied around 340
pips, compared to the measly 150-pip rally by EUR/USD over the past
week. That has coincided with a 68% increase of GBP longs and a slight decrease of Euro longs in the futures market as of last Tuesday. Yen has finally stopped notching up new levels of shorts,
and shorts have actually decreased - though only by a paltry 9%. The US
dollar could see some slippery move in the days prior to the US FOMC rate decision on Wednesday
as the market scales down expectations of another rate hike given the
recent decline in inflation pressures and energy prices. The near-term
fate of USD will depend on...