USD Firms Ahead of FOMC as Rate Expectations Drive Support – BNY
The US Dollar is strengthening ahead of the FOMC meeting, driven by rate expectations rather than safe-haven demand, according to BNY’s Geoff Yu. iFlow data shows clients net selling the Canadian and Australian Dollars while some North Asian currencies remain attractive.
According to BNY strategist Geoff Yu, the US Dollar is firming ahead of the Federal Reserve’s FOMC meeting. The bank’s iFlow data indicates that the currency’s recent strength is increasingly tied to rate expectations, not safe-haven flows.
In terms of positioning, clients are net sellers of the Canadian Dollar (CAD) and Australian Dollar (AUD). Meanwhile, certain North Asian currencies continue to attract interest, though specifics were not detailed.
Source: FXStreet Forex News