US Dollar Strength Extends as Growth Holds – Commerzbank
Commerzbank analyst Volkmar Baur notes that despite easing oil prices and lower inflation expectations, the market still prices in at least one more Fed rate hike by year-end, while the ECB is expected to deliver only one further move.
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Commerzbank's Volkmar Baur observes that the US dollar's strength continues to extend as the economy holds up. Despite easing oil prices and lower inflation expectations, market pricing still anticipates at least one more Federal Reserve rate hike by year-end.
In contrast, the European Central Bank is seen delivering only one further move, underscoring the divergence in monetary policy outlooks between the US and the eurozone. This gap supports the greenback's momentum.
Source: FXStreet Forex News