Market news
16.02.2023, 10:14

A weaker Dollar seems less justified – Commerzbank

Fed’s credibility is not up for debate. Economists at Commerzbank believe that a weaker Dollar is less likely following robust January data.

Trust is good, rate hikes are better

“The US economy has started into the new year in a much more robust manner than expected, and the Fed will have to hike rates more significantly than expected to ensure that inflation falls towards its target.”

“The Fed’s high credibility is not questioned. As long as the fall in inflation does not seem sufficiently certain, there is confidence the Fed will tighten its monetary policy and a weaker Dollar seems less justified.”

 

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