- Analytics
- News and Tools
- Market News
- Current USD levels unlikely to be fully reflecting the end of Fed rate hikes – Commerzbank
Current USD levels unlikely to be fully reflecting the end of Fed rate hikes – Commerzbank
The short burst of USD strength that pushed EUR/USD to levels below 1.0250 the day before yesterday seems to be over again. Economists at Commerzbank expect USD weakness to remain in place.
Compared with levels at the start of the month, considerable USD weakness will remain in place
“Slowly it is becoming clear that compared with levels at the start of the month considerable USD weakness will remain in place.”
“If a rate hike cycle becomes foreseeable the corresponding currency benefits. In a similar manner it is a negative argument if the market focusses on the fact that the cycle seems to end. In particular if afterwards (as in the case of the Fed) a rapid reversal (i.e. rate cuts) is then expected.”
“At the moment FX traders are likely to be torn between the continued hawkish comments by Fed members and the prospect of what the Fed will do in 2023. I therefore consider it to be unlikely that the USD levels at which the market is currently settling are already fully reflecting the end of Fed rate hikes.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
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.
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 teletrade.org. 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 pr@teletrade.global.
Bank transfers
