Scope for Fed funds rate expectations to adjust higher in favour of a firmer USD – BBH
Source Fxstreet
Higher US consumer inflation expectations can further curtail money market expectations of Fed funds rate cuts this year and turbocharge USD higher, economists at BBH say.
Will USD rally get turbocharged?
We see scope for Fed funds rate expectations to adjust higher in favour of a firmer USD because underlying US price pressures are still high, and the economic growth outlook is encouraging.
The risk to our bullish USD view is the Fed dismissing the latest high inflation readings as noise and power forward with a dovish stance. This would lead to lower US real interest rates and undermine USD against most major currencies.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
The crypto market experienced nearly $2 billion in liquidations over the past 24 hours, as the total market capitalization dropped below $3 trillion for the first time in five months.Bitcoin (BTC) alo
Market Meltdown: BTC, ETH, and XRP Capitulate as Bears Seize ControlBitcoin trades around $85,900 after breaking below $86,000, with Ethereum under $2,791 and XRP below $1.99 as BTC, ETH and XRP extend weekly losses of 8–10%, forcing traders to focus on supports at $85,000, $2,749 and $1.77 for clues on whether this sell-off has further to run.
Bitcoin trades around $85,900 after breaking below $86,000, with Ethereum under $2,791 and XRP below $1.99 as BTC, ETH and XRP extend weekly losses of 8–10%, forcing traders to focus on supports at $85,000, $2,749 and $1.77 for clues on whether this sell-off has further to run.
Analysts identify the $84,000 to $73,000 range as Bitcoin's likely "max pain" territory where capitulation may occur.
Bitcoin fell below $87,000 on November 20, 2025, amid a storm of quantum security fears and $1.3 billion whale capitulation. In the process, it blew almost $220 million in long positions out of the wa
EUR/USD extends losses for the fifth consecutive day and trades at 1.1520 at the time of writing on Thursday after a sharp reversal from levels near 1.1600 on Wednesday.
