The US dollar is trading at stronger levels after the FOMC meeting. Nonetheless, economists at Commerzbank will wait for employment data due out tomorrow before starting huge dollar jubilations.

Sentiment might deteriorate quickly if the US economy begins to weaken significantly

“Yesterday’s FOMC meeting was positive for the dollar and it justifiably is trading at stronger levels. Nonetheless: in the end, what matters is how the economy and inflation develop now. If signs increasingly emerge that the US economy – and in particular the labour market – begins to weaken significantly, sentiment might deteriorate quickly. In that case the central bankers’ concerns about high inflation rates becoming entrenched would become less relevant.”

“I would wait for tomorrow’s labour market data before starting huge dollar jubilations.”