US dollar’s upside appears limited despite a hawkish Fed outcome – JP Morgan
|Analysts at JP Morgan offer their take on the first US Federal Reserve (Fed) policy meeting of 2022 and its likely impact on the US dollar.
Key quotes
"We do not expect fireworks from the Fed on Wednesday. It is possible that the Fed chooses to conclude QE early, though even if they do, the ultimate impact on US yields could be relatively muted given that a March hike is already fully priced and that UST valuations have closed much of the valuation gap that had persisted through late-2021.”
"This may limit the extent of tactical upside for the dollar against low-yielders even with a hawkish outcome.”
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.