Fed Chair Powell struggled to sound convincing about a hawkish Fed over the coming months. Economists at Commerzbank count on volatility round USD alternate prices to persist.
Fed Chair Powell did now not persuade
“Because Powell had sounded uber-hawkish in the past, he was once solely in a position to shock on the dovish facet or come throughout as impartial at best. But no longer always, no longer yesterday. It made little distinction that the Fed Chair repeated over and over once more that there would be in addition fee hikes and that there would probable be no fee cuts this year.”
“Slowly a double discrepancy is rising between the market view and the Fed: disagreement about the ultimate top in pastime prices and disagreement on whether or not there will be fee cuts this year. The first of these two discrepancies will be determined in the spring, however I agree with the FX market is extra involved in the 2d aspect. That capability that the Fed prompted volatility of USD trade quotes is going to proceed even after the summer.”