Fed Chair Powell may try his best to make a July hike seem likely – Commerzbank

FXStreet Insights Team FXStreet

Ulrich Leuchtmann, Head of FX and Commodity Research, analyzes USD outlook ahead of FOMC.

Currency market should not overlook the obvious contradiction between words and deeds

If the FOMC leaves the target range unchanged today, there is a high probability that the market's revision of expectations since the last meeting was premature. However, since this was the cause of most of the USD strength since then, there is less reason for this strength.

Sure, Powell may try his best to make a July hike seem likely. But I hope that the currency market is not so stupid as to overlook the obvious contradiction between words and deeds that this would create.

See – FOMC Preview: Banks expect the Fed to take a break, but signal higher rates ahead

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FXStreet Insights Team

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The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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