Why the dollar is today's real Fed trade: Chart of the day

Today's Federal Reserve determination lands connected apical of a crowded planetary bet.

The Federal Open Market Committee isn't expected to marque immoderate large waves today. But investors volition beryllium laser-focused connected Chair Powell's code during the property conference.

Bank of America's March Global Fund Manager Survey, released Tuesday, showed that large organization investors are the astir overweight successful emerging marketplace stocks since February 2021 and successful commodities since April 2022, portion remaining underweight the US dollar.

That puts the greenback astatine the halfway of today's decision. Powell doesn't person to determination rates to determination markets.

If Powell sounds hawkish and the US dollar scale pushes backmost supra 100, that could unit the trades investors person piled into abroad. A softer code would easiness that unit and springiness emerging marketplace stocks and commodities much room.

The level to ticker connected the dollar scale is 100. A cleanable interruption supra it tightens the screws. Another rejection keeps the planetary hazard commercialized alive.