I think the USD is susceptible to market focus on the peak in tightening cycle. Markets are currently pricing in around 11-12 bps of additional tightening later this year. Whether the probability of more hikes strengthens or weakens from around 50% after today’s decision will likely dictate how the USD performs in the near-term. 

Technical pointers are tilting USD-negative in broad terms after the DXY peaked in the upper 101 area on Tuesday, filling a small gap on the chart and closing net lower on the day; a lower close for the DXY today would ‘confirm’ a bearish technical reversal, capping recent gains.