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FX Daily: US Dollar is on sure ground as Fed gets set to hike
We expect a 50bp rate hike by the Fed today and an announcement that the balance sheet will be allowed to shrink over the coming months. But the focus will mostly be on any endorsement of the market's hawkish tightening expectations. Any "sell-the-fact" downside risk to the dollar appears limited, also considering the USD-positive global environment. USD: Limited downside risks as the Fed prepares to hike. With the exception of a modest recovery in some high-beta currencies at the start of this week (AUD is a stand-out after the Reserve Bank of Australia hike), dollar crosses have traded in some rather tight ... (full story)