USD Slides for Third Day as Fed Tightening Bets Wane
The US Dollar Index extends its decline for a third consecutive session as market expectations for Federal Reserve rate hikes fade, with swaps now pricing in less than 20 basis points of tightening, according to Scotiabank strategists.
DXYUSD
The US Dollar is under pressure for the third straight session, with the dollar index slipping as expectations for further Federal Reserve tightening diminish. Scotiabank strategists Shaun Osborne and Eric Theoret attribute the move to fading hawkish sentiment.
Swap markets now imply less than 20 basis points of additional tightening from the Fed, reflecting reduced confidence in further rate increases. The corrective pressure suggests near-term downside risk for the greenback.
Source: FXStreet Forex News