USD index can make a run at 97.0 - Westpac

Sandeep Kanihama FXStreet Contributor

Richard Franulovich, Research Analyst at Westpac, notes that the June and July Fed hike odds sit at 34% and 54% respectively.

Key Quotes

“While our base case is for the Fed to take a pass at both meetings - Chair Yellen’s concerns about asymmetric policy risks and Brainard’s caution around global risks should sway the Board - those Fed hike odds are nevertheless apt to drift higher in coming days, not least because Fedspeak should continue to hammer home the message that June is a live option. June Fed hike odds can rise toward 40-45% before stabilising and the USD index can make a run at 97.0. But, would shift to the sidelines by mid-next week on risks of a contractionary ISM and soft payrolls.

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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