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Fed Pushes on an Open Door, and the US Dollar's Recovery Goes into Overdrive
Dollar bearish sentiment is fickle. The shift in the Fed's economic projections, which saw the median view now anticipate not one but two hikes in 2023, has seen the bears beat a dramatic retreat. Many have abandoned their view entirely. In this weekly technical note, we have been tracking the improving tone for the dollar prior to the FOMC meeting. The broad sideways movement seemed to have alleviated the extended condition that was a product of the dollar's slide in April and May after rallying in Q1. At the same time, we are mindful that interest rates and differentials are not supportive of the dollar. The ... (full story)