The dollar edged higher ahead of the Fed meeting, and XTB said while the central bank could defy expectations by sounding less cautious about the pace of future rate cuts, any dollar falls were likely to be limited,

The bar for interest-rate hikes from the Federal Reserve remains high, but they aren't being ruled out either. Barclays analysts looked at three prior episodes of reversals of Fed policy and found a tightening labor market as a common thread,