FXStreet (Guatemala) – Lee Hardman,analyst at The Bank of Tokyo Mitsubishi UFJ explained that the dollar is coming off ahead of the next Fed meeting amongst the market turmoil.
Key Quotes:
“The position unwind is temporarily helping to ease the strength of the US dollar against the other major currencies although it continues to strengthen sharply against emerging market and commodity related currencies.”
“The more intense phase of global risk aversion and ongoing fall in commodity prices has prompted the market to scale back sharply expectations for future Fed monetary policy tightening.”
“The probability of the Fed delivering a rate hike this year has fallen to around 50:50, and by their next meeting to only around 1:3. More modest Fed tightening expectations are helping to dampen US dollar strength against the other majors in the near-term.”
(Market News Provided by FXstreet)