The BBH economists say in their latest note that the recent relentless selling of the US dollar (USD) was interrupted by a sharp rebound on Friday following the release of retail sales data and hawkish comments from the Fed.
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“DXY rises for the second day in a row and trades near 101.714. A break above 102.036 is needed to test the April 10 high near 102.807.”
“Fed tightening expectations have picked up a bit. WIRP suggests almost a 90% chance of a 25bp hike at the May 2-3 meeting, up from 70% early last week and 50% at the beginning of the previous week. The slim chances of another 25bp hike in June have crept back into the market. In this regard, Powell has said that Fed officials “just don’t see” any rate cut this year. If a second rate hike is priced higher, while a rate cut is priced lower, this should help the dollar get more traction.”
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.
