Morgan Stanley Research previews the October FOMC meeting on Wednesday.

"We expect the Fed to hold rates at 3.75-4.0% in October, with two dissents. Chairman Warsh is likely to signal further tightening while emphasizing a gradual, trend-dependent approach. We expect 25bp hikes in December and March, with risks skewed toward more tightening.   No dissents, financial stability concerns, or a benign inflation assessment would be dovish signals. Three or more hawkish dissents, explicit tightening guidance, or heightened concerns about inflation and energy spillovers would be hawkish," MS notes.

"Our FX strategists expect the USD to remain supported despite an October Fed hold, with persistent US inflation, upside risks to global yields and US rate differentials, and European political uncertainty all favoring further USD strength," MS adds.