May 04, 2022 - 01:09 PM 259 views
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.