Will the Fed’s Rate Hike Send the US Dollar Soaring to 100? 3 Key Factors to Watch!
The US dollar is expected to face its first interest-rate decision post-COVID on Wednesday with the market pricing in an expected 25 basis point hike from the Fed. This has led to a 93% chance of a rate hike, with investors more concerned about the economic outlook in the US than before. The limited impact of the anticipated rate hike on the USD is dependent on the Chair's framework for this policy decision. The USD is further supported by the relative rate picture as the eurozone inflation remains well above the target and the ECB's deposit rate hike of 25 bps to 2.5% is dominated by the potential for aggressive rate hikes by the Fed. Considering current economic dynamic factors, the market is neutral to bullish for DXY, neutral to bearish for EUR, and neutral to bearish for GBP. If you're looking for the latest updates on the US dollar price forecast, be sure to subscribe to our channel for more expert analysis.
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