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ING "Can't Exclude" Rising Odds Of 100bp Move This Week

FED

ING notes a 75bp hike is "an increasingly likely scenario" for Wednesday's Fed decision, and "At this stage, we cannot exclude the implied probability of a 100bp move to start rising, too."

  • The price action since reports of a 75bp hike came out Monday "paves the way for a dollar correction" if the Fed only moved 50bp, but also "shows that markets are increasingly comfortable with very hawkish Fed pricing, and evidence of sticky inflation over the coming months may well keep such hawkish pricing – and by extension, the dollar – well supported even if equities start to recover".

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