USD to be the main beneficiary of a hawkish message from Powell – Crédit Agricole
|Markets stay relatively quiet waiting for FOMC Chairman Jerome Powell to deliver his opening remarks at the annual Jackson Hole Symposium. A hawkish message should see the dollar strengthening, in the view of economists at Crédit Agricole CIB Research.
High bar for a hawkish surprise from Fed Chair Powell
“We continue to think that the recent price action is raising the bar for a hawkish surprise from the speech of Fed Chair Powell in particular. Indeed, the US rates market current pricing of policy tightening seems consistent with that signalled by the June Fed dot plot.”
“With many positives related to the Fed already in the price of the USD, we continue to think that the currency’s main support could be a potential further deterioration of risk sentiment. Indeed, should a hawkish message from Powell undermine global risk sentiment, the USD could be the main beneficiary.”
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.