Outcome of Fed meeting to be overall positive for the dollar's short-term outlook – ING Fed DollarIndex Banks
The Federal may well match market expectations and hike by 75 bps today. Economists at ING cannot exclude some "sell-the-fact" reaction in the dollar, but any correction should be very short-lived, and the overall outcome should be USD-positive beyond the very short-term.“Our base case scenario is a 75 bps hike today. Markets are fully pricing in such a scenario, and the updated set of projections – in particular the dot plots – will be key in driving the market reaction.
“We think any dollar correction will be quite short-lived, as we deem it unlikely that investors will turn materially less bullish on USD in an environment of accelerating If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.