Dollar struggles to benefit from hawkish Fed comments. ING economists believe a more patient trading environment could return.
It may be too soon to return to betting on the dollar in the short term
“Markets are viewing this moment as the high point of the Fed’s hawkish communication and are now watching opportunities to re-enter bearish procyclical USD positions at more attractive levels. However, there is still some room for USD rates to absorb a further repricing of rate expectations from hawks, and a rebound in risk currencies may be premature.”
“We believe that could return a more patient trading environment after this morning’s risk appetite and last until the crucial US inflation report on Tuesday.”
“In currencies, it seems too soon for the dollar to re-enter a sustained downtrend: instead, local stories could take center stage.”
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.
