ING: The Federal Reserve decision may test the resilience of the US dollar against falling oil prices

⑴ Francesco Pesole of ING stated in a report that after the United States and Iran reached a temporary peace agreement, the Federal Reserve's policy decision this week may test the dollar's resilience to falling oil prices. ⑵ He said that the dollar needs confirmation that policymakers, especially the new Federal Reserve Chair Kevin Warsh, remain open to future rate hikes, even if rates are kept unchanged on Wednesday. "If Warsh or the broader Federal Open Market Committee sends a stance signal that clearly contrasts with the market's expected outlook, the dollar will face substantial selling pressure." ⑶ However, he stated that abandoning a dovish stance should be enough to support the dollar. The US Dollar Index was flat at 99.56.