“Two rate increases not at all unreasonable”
When such comments come from the most dovish of FED policymakers’, it calls for caution. Chicago FED president Charles Evans, last year has been strongly calling for no hikes, though finally have agreed on December (vote was unanimous) and in last night’s interview he suggested current dot-plot projections of two rate hikes this year, may not be aggressive.
With such outlook of his, we have been surer of our call that FED will hike rates in June.
However we are still maintaining the position that it may not be able to boost Dollar much, as current hike path is less steep than originally assumed by market back in 2015.
FED Rate Hike Aftermath Series: Take note of Evans, a dove on the change
Nevertheless market is pricing as of now one rate hike this year and in July, so further fast forward front end is possible in the yield curve, which is likely to provide some support.
Dollar index is currently trading at 96.02, up 0.42% for the day so far.
The material has been provided by InstaForex Company – www.instaforex.com