The Federal Open Market Committee concludes a two-day meeting this Wednesday, and Hardy believes that the Fed is likely to keep all options open. He points to the fact that there are three more data cycles before September, which leaves plenty of room for the US economy to show solid signs of improvement and for the Fed to decide to move on rates earlier than expected.

With little room to surprise on the dovish side, the dollar could move higher if the Fed is insistent enough in its language that it will move when the timing and the data are right.

The June meeting is one of four annual meetings at which the FOMC also releases its economic and policy projections.