Free Trial

Heading into today's Fed rate decision,......>

DOLLAR
DOLLAR: Heading into today's Fed rate decision, the USD index remains above the
200-dma and, while little is expected from the Fed today (no press conference,
no new projections), MNI's PINCH model (as of yesterday) still attributes a 10%
probability of a rate hike. As a result, the USD may have to correct as those
positions are adjusted after what is expected to be an 'hawkish hold' - albeit
to a modest extent.
-According to MNI's fixed income team, focus remains on June as the next
opportune meeting for an FOMC rate hike, which is 100% priced in according to
MNI's model.
-MNI's FX Pi also sees the non-commercial positioning holding the highest USD
relative net position since May 2017, with markets dropping long exposure in
EUR, GBP and JPY in favour of USD, according to the most recent CoT report from
the CFTC.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.