Euro Has Limited Scope to Fall Against Dollar After Fed Rate Hike
Dow Jones
2 hours ago
0927 GMT - The euro could fall slightly against the dollar if the Federal Reserve raises interest rates and signals further possible tightening in a decision later, ING's Francesco Pesole says in a note. Looking further ahead, the Fed and European Central Bank are unlikely to deliver another rate rise, implying room for money markets to significantly reduce pricing of additional U.S. and eurozone rate increases, he says. This would limit the scope for the euro to fall. "A coordinated move lower in front-end rates can put a floor under euro-dollar, as would likely happen alongside a decline in energy prices." The euro trades flat at $1.1539 and ING expects it to reach $1.15 after the Fed decision at 1800 GMT.
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