Barclays Capital FX Strategy now sees room for further near-term USD consolidation in light of last week's 'unhurried' Fed which boosted risk assets and weakened the USD as the central bank seemed in no hurry to project a higher path of rate hikes next year.

In particular, Barclays expects further near-term USD weakness, concentrated primarily against high-yielding currencies.

"History suggests that this point in the Fed's tightening cycle is typically followed by further near-term USD weakness, stable equity prices and lower 10y UST yields," Barclays notes.

Barclays also continues to forecast two more rate hikes this year and three hikes in 2018 and expect to hear more from the committee about its balance sheet policies at the June FOMC.

Source: Barclays Research, efxnews.