US Dollar Outlook: Fed Decision Due â Will it Spark Fireworks? 2021-07-27 22:15:00 Rich Dvorak, Analyst US DOLLAR PRICE OUTLOOK: FED ANNOUNCEMENT & YIELDS IN FOCUS US Dollar edged lower on Tuesday as markets gear up for tomorrow’s Fed rate decision USD/JPY weakened notably during the session with Treasury yields resuming their drop Fed Chair Powell might opt to stay cautiously accommodative due to covid variant risk Advertisement The three largest components of the DXY Index – EUR/USD, USD/JPY, and GBP/USD – all reflected notable US Dollar weakness on Tuesday. Though the US Dollar did see some safe-haven appeal and strength against commodity currencies like the Loonie and Aussie, the broader DXY Index finished the session -0.16% lower on balance.