Fed Rate Hike Looms: Will USD Soar or Crash? 93% Chance of 25 Basis Point Hike
As the US dollar faces its first interest-rate decision post-COVID, investors are bracing for a 25 basis point hike from the Fed. With a 93% chance of a rate hike priced in, the market is more concerned about the economic outlook in the US than before. The Fed's inflation target is 2.0%, and August inflation of 3.4% came with core inflation rising 0.3%. The USD is further supported by the relative rate picture as the eurozone inflation remains well above the target. Will the Fed's decision send shockwaves through the market, or will it have a limited impact on the USD?
Tags/Hashtags: #inflation #fomc #boe #ecb #fed #eur #gbp #usd #dxy #fomc #boe #ecb
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