The US dollar has surged following a hawkish Federal Reserve outlook that suggests potential rate hikes this year. Meanwhile, the British pound faces downward pressure as Bank of England rate hike expectations soften amidst local economic data.
Key Takeaways
- 1.The US dollar is strengthening following a hawkish FOMC update that saw markets price in renewed rate hike expectations.
- 2.The Bank of England's rate hike expectations are cooling due to a softer UK labor market and lower inflation readings.
Table of Contents
- USD: Fed update encourages rate hike expectations despite US-Iran deal
- GBP: BoE rate hike expectations pared back ahead of MPC meeting & Makerfield by-election
- KEY RELEASES AND EVENTS
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Authors
Lee Hardman
Securities
US Dollar Index2-year US Treasury
Themes
Central Bank Policy DivergenceInflation ExpectationsPolitical Risk
Regions
GlobalEuropeUnited StatesUKIran