- Analytics
- News and Tools
- Market News
- Hawkish Fed messaging should help boost yields and the Dollar – BBH
Hawkish Fed messaging should help boost yields and the Dollar – BBH
Economists at BBH expect a 25 bps hike and a very hawkish tone from the Fed. With risks to U.S. rates weighted to the upside, the dollar is likely to benefit from any bond market repricing of Fed policy.
DXY is in the process of carving out a near-term bottom
“We believe the dollar is in the process of carving out a near-term bottom. DXY has seen some support emerge just below 102. If it can establish a good base at current levels until the Fed narrative shifts again, the Dollar would be well-positioned to first challenge the January high near 105.631.”
“USD/JPY is vulnerable to renewed selling if the Bank of Japan starts removing accommodation this year, as we expect. However, the pace of tightening would be very modest and so further Yen gains beyond the knee-jerk reaction will be tough.”
“We believe US yields should move higher if and when a more hawkish narrative is established. In turn, this should help the Dollar recover some ground.”
See – Fed Preview: Forecasts from 16 major banks, dialing down rate hike to 25 bps
© 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
