The US Dollar will Gain Profit in the Short Term From the Fed’s Rate Decision

According to Commerzbank economists, the US Federal Reserve will most likely raise its key rate by 50 basis points today. In these circumstances, the US dollar might make a small move upwards.

May 04, 2022 - 01:09 PM 259 views

The US Dollar will Gain Profit in the Short Term From the Fed’s Rate Decision

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According to Commerzbank economists, the US Federal Reserve will most likely raise its key rate by 50 basis points today. In these circumstances, the US dollar might make a small move upwards.

Developments happening around the war in Ukraine are limiting the potential of Negative Correction.

The USD may benefit from the rate decision in the near term since some market players are likely to predict a smaller 25bp rate move. It's unclear whether the Fed's views and pronouncements at the media conference will be sufficiently hawkish to allow the USD to gain further.

Estimates for interest rates have already advanced significantly. As a result, the market may be dissatisfied, with the USD correcting lower. However, events in the Ukraine conflict are expected to minimise any potential negative correction.

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