It's time to adjust your long dollar book

We are getting close to where the dollar will reverse itself somewhat before moving up further. Parity for the dollar with the euro remains the markets’ objective. It will, however, take some time before it gets there.

In the meantime, all eyes are on the results of the FOMC meeting and Fed Chair Yellen’s press conference.

The euro has had a rough fall, in the last two days the pound has caught up to the euro. This should signal to the dollar based trader that it may be wise to reduce the long dollar book, put patience into his tactics and sit and wait to see the Fed's reaction. Granted the Fed may be willing to increase rates but the current economics and the dollar forecast will influence the timing. This would point to later rather than sooner for a rate hike.