Ulrich Leuchtmann, Head of FX and Commodity Research, lacks the imagination to see the US Dollar benefiting from the US Federal Reserve's (Fed) policy announcements.

Convincing Powell needed to lift the USD

“Fed Chair Jay Powell will have to sell to the market why he and his colleagues will be reducing the speed of the rate steps before the promised key rate level has been reached. So far I am unsure how he is going to manage that convincingly. Only if he succeeds, USD will be able to profit.”

“I cannot promise that the FOMC decision will be USD-negative, all I can say is: I lack the imagination for a USD-positive result.”

See – Fed Preview: Forecasts from 16 major banks, dialing down rate hike to 25 bps