The markets are gearing up for a potentially pivotal week as the U.S. Federal Reserve’s meeting, inflation release, and PCE data are set to shake up the FX landscape. The dollar is currently cautiously elevated, awaiting cues from the Fed’s statement and Jerome Powell’s tone. A hawkish tilt could boost the dollar, while a dovish pivot could send it lower. The euro and pound are also in focus, with EUR/USD looking to break resistance at 1.1780. Sterling is sensitive to U.S. policy signals, while USD/JPY remains near 148, driven by rate differentials. Risk sentiment is fragile across global markets, with gold caught between falling inflation expectations and a firm dollar. Markets are primed for breakout trades as surprises could lead to violent reactions.

Read more at Investing.com: All Eyes On Fed: US Dollar Poised for Breakout This Week?