Today is, of course, the highlight of the week: the FOMC meeting. Commerzbank currency analyst Antje Praefcke analyzes the outlook for the US dollar (USD) ahead of the monetary policy announcement.
There will be no big chances of losses for the USD
I think the risk of the dollar falling after the FOMC meeting is quite low. I can't imagine a mild surprise, i.e., points falling after stronger-than-expected inflation readings in January and February and Fed Chair Jerome Powell signaling a greater willingness to cut interest rates. interest in the press conference. I can rather imagine that the Fed will emphasize its caution and at least confirm market expectations, that is, that there will be no further room for losses in the Dollar.
In this sense, I think the question today is more about how much higher the dollar can go. I think it will depend on the extent to which the points meet or even exceed market expectations and how cautious or open Powell is in the press conference about lowering interest rates. In my opinion, you can expect something, the only decisive question is how much.
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.
