EUR/USD still has downside opportunity...

Hardly a surprise to see the Dollar mostly rangebound and the index recoil to its confines around the 93.000 axis that has been pivotal for a while, as many if not most currency market participants keep positions light in the run up to the FOMC. However, US retail sales data looms before the big event and often possesses the potential to surprise given a wide spread of forecasts either side of consensus for the headline number and key control group GDP component. For now, the DXY is holding within a 92.852-93.189 band as major counterparts largely respect recent support, resistance and round number or psychological levels.

Also firmer vs the Greenback, but the Yen and Euro are still waning ahead of 105.00 and 1.1900 amidst more decent option expiry interest, between 105.25-15 in Usd/Jpy (1.4 bn) and 1.1835-25 in Eur/Usd (1.1 bn), with the latter also wary about ECB insinuations regarding the strength of the single currency. Back to the Yen, next up the BoJ and in the interim mixed Japanese trade metrics and Suga approved by the lower house as new PM.