A think tank report on the Fed is gaining some coverage through several media outlets due to it’s hawkish outcome. The report states that they believe next week’s FOMC meeting will see the central bank push ahead with plans to taper the balance sheet as soon as September. They will also be eyeing a June rate hike.
This stance is a fair bit more hawkish than the current one in the market which suggests that if it holds weight then there is the possibility of a sizable repricing in the US dollar. The buck itself is trading fairly mixed overall on the day with emerging market currencies such as the Mexican Peso, Brazilian Real and the Turkish Lira the biggest gainers.
The Euro was earlier gaining against the buck but has since reversed and fallen down to its lowest level of the day following the Draghi press conference.
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