Nearly a week has passed since the Federal Reserve’s decision. How is the dollar positioned?
Here is their view, courtesy of eFXdata:
ING Research discusses its reaction to the FOMC policy decision.
“The Federal Reserve has cut interest rates by 25bp at the third consecutive FOMC meeting. The market anticipates a pause in December, but a slowing economy means we think there are more rate cuts are to come,” ING notes.
“Friday’s jobs report is also likely to underline the deceleration story even with the acknowledgment of a temporary distortion due to the GM-related strike. Inflation expectations are also very low and wage growth has moderated recently. With the European and Asia story showing little sign of a rebound and the dollar remaining firm we are, for now, sticking with our view that the Fed will take out additional “insurance” against recession at the December meeting with a further rate cut possible in 1Q20,” ING adds.
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