USD: Direction to be driven by FOMC today – Danske Bank
Morten Helt, senior analyst at Danske Bank, suggests that in focus for USD today will clearly be the Fed and in light of recent softness in pricing, they see risks titled towards a hawkish surprise.
“We stress that a key risk is that the socalled ‘dots’ are lowered further out which could be seen as somewhat dovish. But, all in all, we see risks for some USD support here as Fed confirms it is determined to get to ‘neutral’.”
“EUR/USD remains stuck in the 1.13 range near term as carry and cyclical divergence counter EUR backing from ECB ‘normalisation’ but risks into Fed are tilted to the downside.”