The Fed will hike interest rates by 25 basis points at its next meeting, but it will be the last one in this tightening cycle. We've been recommending buying the euro.
The expectations are fluctuating day by day, so there's no clear direction at the moment.
I do not think China will take the bold course of doing that. But this persistent speculation could encourage Middle Eastern and other Asian nations to race to diversify their dollar holdings.
The market is focusing on how many more times the Fed will raise rates, and paying close attention to the minutes. If the minutes suggest an early end to rate increases, that will surely trigger selling of the dollar.