On March 22, Societe Generale analyzed that the Fed is expected to raise interest rates slightly by 25 basis points, and the dot plot will be revised slightly, which will bring downside risks to the dollar this week.
A 50bps rate hike would be a surprise, but could offset its impact on the USD if the dot plot does not change significantly from December.
Even with the Fed raising rates, dollar profit-taking could accelerate if Fed Chairman Jerome Powell acknowledges that financial conditions are tightening and there are downside risks to growth.