A back up in short-term rates could frustrate Dollar bears in the near term – ING
Source Fxstreet
The consensus view in 2024 is that the Dollar will decline. Economists at ING agree but with some caveats.
Back up in short-term rates is a Dollar positive
We sympathise with the increasing consensus view that the Dollar will trend lower in 2024. However, we think markets are wrong to price Fed rate cuts as soon as March, and a rebound in short-dated USD yields could give the Dollar breathing room in the near term.
The kind of rangebound trading seen so far in January may be the norm for a bit longer in G10.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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The USD/JPY pair is seen consolidating in a narrow band around mid-159.00s during the Asian session on Tuesday as traders opt to wait for the crucial Bank of Japan (BoJ) before placing fresh directional bets.
Gold price (XAU/USD) holds steady near $4,600 during the early Asian session on Wednesday. The precious metal steadies as traders await a key Federal Reserve (Fed) interest rate decision later on Wednesday.
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