Fed: December hike will not move USD much – Danske Bank
|Analysts at Danske Bank do not think the Fed will move the USD much with the December hike, albeit the kneejerk reaction could be for a slightly lower EUR/USD if the dots remain unchanged.
Key Quotes
“We see EUR/USD staying roughly within the 1.17-1.20 range ahead of year-end. The Fed’s balance sheet reduction (aka tighter USD liquidity) and/or a positive surprise on the US tax reform could drag the cross slightly lower in Q1, but for 2018 as a whole, we stress that any USD support from Fed hikes will be likely to be dominated by other (EUR-positive) factors.”
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