Speech from Fed Chair Powell unlikely to change the current trading dynamic

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Speech from Fed Chair Powell unlikely to change the current trading dynamic
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USD continues to strengthen ahead of keynote speeches at Jackson Hole. Economists at MUFG Bank analyze Greenback’s outlook. Rate hike expectations cou

USD continues to strengthen ahead of keynote speeches at Jackson Hole. Economists at MUFG Bank analyze Greenback’sWe are not expecting today’s keynote speech from Fed Chair Powell to change the current trading dynamic.

Going into today’s speech from Fed Chair Powell, the US rate market is pricing in around 5 bps of hikes by the September FOMC meeting and 14 bps by November. We would not expect those expectations to change significantly today unless Chair Powell delivers a dovish surprise and formally ends the hiking cycle which appears unlikely.

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