USD: Goldman Sachs Fed expects 0.25% interest rate hike by Fed, which should help dollar pursue its rise

In a note issued yesterday evening, the Goldman Sachs bank delivers its forecasts for tonight's Fed meeting and its impact on the forex:

"In line with market expectations, we expect the FOMC to announce a 0.25% increase in the Fed Funds rate this evening.

However, based on this increase, our economists anticipate a rate of monetary tightening faster than the market currently takes into account, and we expect the dollar to continue to rise as tightening expectations rise.

That said, we also expect Yellen to remind us that monetary policy is not decided in advance, and that data will continue to dictate future rate hikes."