Explore eFXplus Derived Data That Drive Results
A Data Partner of:
Refinitiv
Jun 29 - 09:55 AM

USD: Fed Sticks To A Hawkish Message; Premature To Expect A Sustained USD Reversal N-Term - MUFG

By eFXdata  —  Jun 29 - 09:00 AM

MUFG Research maintains a bullish bias on the USD over the coming weeks.

"The US dollar has derived support from hawkish comments from New York Fed President Williams who reiterated that the Fed needs to lift their key policy rate to between 3.00% and 3.50% later this year, and then to between 3.50% and 4.00% next year would be “perfectly reasonably”. The comments provide some pushback against the recent pullback in Fed tightening expectations. The US rate market has pared back expectations for the terminal policy rate from close to 4.0% to around 3.5% reflecting expectations that weaker growth will limit how far the Fed will need to raise rates," MUFG notes.

"Those expectations for a dovish shift from the Fed could be disappointed in the near-term unless evidence emerges of an even sharper slowdown for the US economy based on the comments from New York Fed President Williams. It supports our view that it is premature to expect a more sustained reversal of US dollar strength at the current juncture," MUFG adds. 

Source:
MUFG Research/Market Commentary

Subscription

  • eFXplus
  • End-user license agreement (EULA)

About

  • About
  • Contact Us

Legal

  • Terms of Service
  • Privacy Policy
  • Disclaimer
© 2022 eFXdata · All Rights Reserved
!