Hawkish Fed Hold to Support US Dollar, Says MUFG
MUFG's Lloyd Chan expects the FOMC to keep rates unchanged with a hawkish tone, stressing inflation risks, which could support the greenback.
USD
MUFG analyst Lloyd Chan expects the Federal Open Market Committee to deliver a hawkish hold, leaving interest rates unchanged while emphasizing elevated inflation risks.
Chan notes that recent US economic data has softened, but markets are still pricing in some probability of a rate increase in July. The hawkish hold, combined with lingering rate hike expectations, may lend support to the US dollar.
Source: FXStreet Forex News