A nod by Powell to downside growth risks could accelerate USD profit taking even if the Fed hikes – SocGen
|Nod by Fed Chair Powell to tighter financial conditions and downside growth risks could accelerate Dollar profit taking, economists at Société Générale report.
Dovish Fed hike could trip up the Dollar
“A smaller 25 bps rate increase by the Fed and minor revision to the dot plot poses downside risk for the Dollar this week.”
“A 50 bps increase would be a surprise but could backfire for the Dollar if the dot-plot shows no significant compared to December.”
“Even if the Fed raises rates, a nod by Fed Chair Powell to the downside growth risks could accelerate Dollar profit taking.”
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