Rodrigo Catril, Senior Currency Strategist at National Australian Bank (NAB) offers his afterthoughts on the Fed Chair Powell’s dovish speech delivered on Wednesday.
Key Quotes:
“Powell’s comments were read as too hawkish back in October…to some extent his overnight comments have neutralized that.
“The question now is just how much more dovish markets can get in terms of rate hike expectations. ..Investors are now pricing in a December rate hike and only one more rate hike in 2019.
Safe-haven buying could return to the greenback if there were no signs of a truce between Washington and Beijing over the course of the G20 summit.”