The market is right to be wary of too much Dollar strength – Commerzbank

FXStreet Insights Team FXStreet

Economists at Commerzbank review Wednesday’s FOMC meeting and its implications for the US Dollar (USD).

The story may be the same, but the tone has changed

We can probably conclude that the story has remained the same, i.e. the Fed still wants to wait for inflation to return to its target on a sustained basis. The new projections are also consistent with this.

The only thing that has changed is Powell's tone: while he sounded very hawkish in January, this time he sounded much more neutral. This assessment of a more neutral Fed may change again as FOMC members speak in the coming days, but for now, the market is right to be wary of too much Dollar strength.

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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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