Fed Hold Expected to Test Dollar’s Resilience: ING
The Federal Reserve is widely anticipated to keep interest rates steady, but two hawkish dissenters may vote for a hike, capping downside for the US dollar, according to ING strategists.
DXY
ING strategists Francesco Pesole and Frantisek Taborsky expect the Federal Reserve to leave rates unchanged at its upcoming meeting. The decision is likely to have two dissenting votes in favor of a rate increase, they note. This hawkish tilt could limit any weakness in the front-end of the USD curve, underscoring the currency’s recent resilience. The analysts suggest that the dollar may find support despite the pause, as the dissents amount to an implicit tightening signal.
Source: FXStreet Forex News