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GBP/USD Weekly Forecast: Critical data to if sterling surrenders to dollar strength
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US Dollar Outlook: USD Undeterred by FOMC– DXY Threatens Breakout
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GBP/USD: Critical data to if sterling surrenders to dollar strength
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Not even thinking of thinking about raising rates – Powell s famous words echo in investors ears but are growingly ignored. If the economy improves, can the Fed keep borrowing costs glued to 0% until 2023? Bond markets suggest the first hike will come in late 2022.
If President Joe Biden does not extend the Fed Chair s term, Powell will be gone early next year and the views of his colleagues will matter more. Hawks in the FOMC may markets already now and even if Powell stays on – by forecasting an earlier rate hike than expected.
While the consensus is set to remain for borrowing costs to remain at zero in the next couple of years, a small minority may bring expectations forward and rattle markets.