The greenback, in terms of the USD Index (DXY), struggles for direction around the 103.80 at the beginning of the week.

USD Index cautious ahead of Fed

The index keeps the bearish note for the third session in a row on Monday, all against the backdrop of the generalized side-lined trade in the global markets as well as further downside in US yields across the curve.

In the meantime, markets are expected to maintain the prudence, and thus the consolidative mood, ahead of the FOMC event on March 22, when the Fed is expected to hike the Fed Funds Target Range by 25 bps.

On the latter, CME Group’s FedWatch Tool currently sees the probability of that scenario around 56%.

In the docket, the only release of note will be a 3-month/6-month Bill Auctions later in the NA session.