- Analytics
- News and Tools
- Market News
- The Fed could keep its Dot projections unchanged, delaying most USD moves to April’s data releases – ING
The Fed could keep its Dot projections unchanged, delaying most USD moves to April’s data releases – ING
Economists at ING analyze how the Federal Reserve meeting on Wednesday could impact the US Dollar (USD).
No fireworks from the Fed
The short-term reaction in the Dollar should be primarily driven by projections on rates and other macro indicators. We expect an unchanged Dot Plot but admit that a hawkish revision looks more likely than a dovish one.
We doubt the meeting will prompt tectonic shifts in FX positioning. Potential Dot Plots adjustments point to some upside risks for USD, but cautious optimism on disinflation points to a softer USD.
Ultimately, the Fed may not provide enough reasons for investors to diverge materially from the 75 bps of easing priced in by year-end, and the predominance of a data-dependent view may very simply delay any larger dollar and broader FX moves to the first half of April when key US figures for March are released.
We would not be surprised to see a modestly stronger Dollar into the FOMC announcement and DXY to end the week close to 104.00.
© 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
