The US Dollar was unable to benefit from the Fed meeting. Economists at Commerzbank expect the greenback to struggle in the next few weeks. 

Some US economic data is now deteriorating

“The first comments from FOMC members following last week’s Fed meeting were more on the hawkish side. After all the dots were moved upwards and signal that Fed Funds will peak above 5%. That means further restrictive comments over the coming days should not come as a surprise, nor should they prompt anyone to buy the Dollar.”

“Some US economic data is now deteriorating too, such as the PMI. That is more likely to fuel scepticism that the Fed might be overdoing its restrictive approach and will therefore have to lower the key rate that much more again next year – which would be detrimental to the Dollar.”

“Shortly before Christmas liquidity on the market is getting increasingly thin, but regardless of this fact I fear that every time weak US data is published USD will be under close scrutiny in future. That means things might get more difficult for the greenback over the coming weeks.”