Dollar Could Struggle if Fed Doesn't Signal More Hikes to Come
Dow Jones
5 hours ago
1033 GMT - The dollar could struggle if the Federal Reserve raises interest rates on Wednesday but doesn't signal that further increases are likely in the coming months, says HSBC's Paul Mackel in a note. "Provided the FOMC vote in favor of a 25 basis-point hike, the tone will need to imply that there is more to come," he says. If Fed Chairman Kevin Warsh uses similar language to European Central Bank President Christine Lagarde last week about not wanting to precommit to further tightening, the dollar would likely struggle, Mackel says. The DXY dollar index rises to an 11-day high of 99.602. U.S. money markets price an 87% chance of the Fed raising rates this week, LSEG data show.
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