Economists at Rabobank expect the Fed to hold rates at their peak level until 2024. Thus, the US Dollar is set to to find support, though this may not be this week.

Labour market conditions remain tight 

“In our view, the Fed is likely to hold rates at their peak until 2024 in order to squeeze out too high services sector inflation. Assuming the market adjusts in line with our outlook, the USD is likely to find support, though this may not be this week.”

“Given the market’s recent tendency to look through hawkish Fed commentary, there is no guarantee that similar overtones by the FOMC today will find much carry through unless they are backed-up by stronger than expected economic data.”

“The relative strength of this week’s US labour market data has the capacity to either counter or complement the message from Fed Chair Powell today and may have a bigger impact on the outlook for the USD over the next few weeks.”