FXStreet (Edinburgh) - Chief Analyst at Danske Bank Allan von Mehren sees the dollar gaining some traction following an almost certain rate hike at tomorrow’s meeting. Key Quotes “The USD is weakening against low-yielding currencies like the EUR, JPY and CHF but strengthening against commodity currencies like the CAD and MXN”. “The latest sharp weakness of large US trading-partner currencies such as the CNY, CAD and MXN supports our view that the Fed will deliver a ‘dovish’ hike on Wednesday”. “The recent weakness of the USD versus interest-rate sensitive currencies like the EUR, JPY and CHF is pricing in a dovish rate hike from the Fed”. “We expect the Fed rate hike will support modest near-term USD strength given increasing market expectations of a dovish hike”. For more information, read our latest forex news.