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After a disappointing ECB, investors are getting nervous as we approach the Fed meeting, even though a rate hike undoubtedly expected. Attention will shift to the timing of the Fed’s next move, yet we see no reason for the Fed to sound overly hawkish. On the contrary, the Fed has a tendency to use a strongly dovish tone whenever the market volatility increases. The VIX increased 64.7% over the course of the week from below 15 the prior Friday to 24.39 last Friday. Additionally, Oil and the Chinese Yuan at record low since 2008 and 2011 respectively, are both putting further pressure on inflation expectations. Thus, the Fed has no interest to see the US dollar rally too quickly.