The DXY Dollar Index plunged 4.1% last week, its biggest weekly drop on record. Economists at DBS Bank are closely following comments from US Federal Reserve officials, including Vice Chairman Lael Brainard.
Markets are less likely to be one-sided this week
“The DXY is near August’s low of 105, from which it rebounded at the Fed’s Jackson Hole Symposium and at the September FOMC meeting.
“The drop in the 10-year and 2-year US Treasury yields to 3.81% and 4.33%, respectively, could invite some reaction from the Fed this week.”
“Today, the Fed Vice Chair, Lael Brainard should remind markets that the Fed is only discussing a minor 50 basis point hike at the December meeting and that it aims to peak and pause rates in 2023 above the 4.6% level forecast in September.”
Source: Fx Street
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