USD rally gains traction. Scotiabank economists analyze the outlook for the Dollar.
USD Firms After Christopher Waller Says 'No Rush' on Rates
Comments from Fed Governor Christopher Waller (a voter and relative hawk) have injected more volatility into the markets ahead of the long weekend. In his comments, the governor emphasized patience over the political outlook, noting several times that there was “no rush” to lower rates. He said recent data was disappointing and he would like to see “at least a couple of months” of improvement before easing monetary policy.
Christopher Waller echoed Chairman Powell's post-FOMC comments that lowering rates later this year would be appropriate. But he added that, following the latest inflation data, it would be wise to “reduce the total number of rate cuts or delay them further into the future.”
The Dollar has advanced, in some cases surpassing recent highs, yields have strengthened a little and spreads have moved slightly in favor of the Dollar in response to the comments, but not enough to support further significant gains for the Dollar.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
