Petr Krpata, an FX strategist at ING, notes that cyclical currencies have stabilised overnight following their post-FOMC decline.

"Given the strong narrative of low US negative real rates for longer, we don’t expect periods of USD gains to be pronounced and long-lived."

"The recent move in oil prices higher should also help cyclical FX vs USD today. Although there was no change to the OPEC+ deal yesterday, the Saudis put renewed pressure on members who are falling short of the deal, to be compliant as well as compensate for their lack of compliance so far."

"The UAE committed to make up for its previous non-compliance. In the short-term, this should give support to oil-exporting currencies such as NOK, CAD, MXN and RUB benefiting."