Fed: Hard to see Chair Powell flipping the policy script and lifting the USD - ING

The highlight of the week will be new Fed Chair Powell's testimony to the House Financial Services Committee on Tuesday, suggests Viraj Patel, Research Analyst at ING.

Key Quotes

“We expect him to echo the tone of the recent minutes and cement expectations of three Fed rate hikes this year. It looks too early for any hints of extra tightening at this stage. US data should be mixed with durable goods orders a little softer, but manufacturing ISM quite strong. Overall, we think the Fed tightening cycle looks fairly priced now and doubt the dollar can gain much further benefit from positive Fed rhetoric.”