USD to find some traction as the Fed is likely to hold rates at their peak until 2024 – Rabobank
|Economists at Rabobank expect the Fed to hold rates at their peak level until 2024. Thus, the US Dollar is set to to find support, though this may not be this week.
Labour market conditions remain tight
“In our view, the Fed is likely to hold rates at their peak until 2024 in order to squeeze out too high services sector inflation. Assuming the market adjusts in line with our outlook, the USD is likely to find support, though this may not be this week.”
“Given the market’s recent tendency to look through hawkish Fed commentary, there is no guarantee that similar overtones by the FOMC today will find much carry through unless they are backed-up by stronger than expected economic data.”
“The relative strength of this week’s US labour market data has the capacity to either counter or complement the message from Fed Chair Powell today and may have a bigger impact on the outlook for the USD over the next few weeks.”
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.