Deutsche Bank sees two more Fed hikes, hawkish risks for dollar
Deutsche Bank strategists noted that three Fed officials dissented in favor of a rate hike, and they now expect two more 25bp increases this year, keeping the dollar supported.
Deutsche Bank strategists highlighted a hawkish backdrop for the US dollar, noting that while the Federal Reserve kept interest rates unchanged at its latest meeting, three members dissented in favor of a quarter-point increase. This split underscores the board's persistent concerns over inflation.
The bank now projects two additional 25-basis-point rate hikes later in the year, and stressed that upcoming labour market and activity data will be pivotal in shaping the near-term policy outlook.
With the dollar index sensitive to Fed expectations, hawkish risks remain in focus.
Source: FXStreet Forex News