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FX Daily: Looking through Trump's comments
The US dollar declined yesterday following President Trump’s comments protesting against high Fed interest rates. We don’t expect these dollar losses to last as the Fed retains its wait-and-see, data dependent approach. Indeed, this was stressed by Chair Jerome Powell yesterday, noting that policy setting entirely depends on incoming economic information. This means that any expectation of an imminent Fed easing remains unrealistic and we need to see bouts of soft US data before the market can again start pricing in cuts and the US– Rest of the World interest rate differential erodes. Also, for the US rate ... (full story)