Fed: Uncertainty about median rate levels to support the dollar for now – Commerzbank
|The Fed rate decision next week will be the next major event for the FX market. In the opinion of economists at Commerzbank, uncertainty continues to benefit the dollar.
Significant upward revision to the rate projections is inevitable
“A significant upward revision to the Fed central bankers' rate projections next week is inevitable – regardless of whether 75 or 100 bps occurs.”
“The main uncertainty is whether the Fed then expects higher median rate levels than the market is currently pricing in (roughly 4.5%). This uncertainty is likely to support the dollar for now.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.