The Federal Reserve is focused on inflation and will look to hike 25 bps if conditions allow. Economists at ING analyze how Wednesday’s meeting could impact the US Dollar.
“We do not expect too much volatility if conditions allow the Fed to hike 25 bps and the dot plots do not surprise too much.”
“An unlikely 50 bps hike would be very bullish for the Dollar – and EUR/USD could well trade under big support at 1.05 on the news.”
“A pause could see the Dollar weaken a little – but it would be understandable after recent bank failures.”