Market news
17.03.2021, 09:40

USD to lean higher even with Fed dovish words – MUFG

FXStreet reports that economists at MUFG Bank believe Powell has a really tough job to convince the markets of the sustainability of the Fed’s ultra dovish stance. 

“The DOTs plot will be one key area of focus and at the margin we see the median DOT for the timing of the first rate increase remaining in 2024 – four FOMC members would need to bring forward their view to 2023 in order to see the median shift to 2023. That’s certainly feasible and wouldn’t be a huge surprise given the scale of increase in macro estimates we are likely to see following the $1.9trn fiscal stimulus that’s about to start hitting the economy. 

“While we may well get to a point this year when the Fed deems it necessary to signal a slowing of the current $20 B per month pace of QE, tonight is certainly not the time for that.”

“We maintain that Powell has a difficult job to convince the markets on the maintenance of the dovish stance. Even with low inflation forecasts; no shift in the DOT plot and strong dovish words, we see limited scope for yields to decline much over the short-term and see risks for the US dollar still skewed to the upside for now.”

© 2000-2021. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at

Live Chat E-mail
Choose your language / location