Fed: Powell can still help the Dollar – ING
|Economists at ING analyze USD outlook ahead of the Fed’s policy decision.
Dollar can get support from well-telegraphed Fed pushback
It is now a very consensus view that the Fed will push back against rate cut expectations.
We expect the Dot Plots will show only 50 bps of cuts in 2024.
Still, markets may feel less comfortable about the first rate cut coming in May, and a softening in risk sentiment could help the Dollar today – and into Christmas.
A stabilisation around 104/105 in DXY seems plausible.
See – Fed Preview: Forecasts from 10 major banks, crushing rate cut prospects
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