Credit Agricole : Post-FOMC USD forecast - eFXnews

FXStreet (Łódź) - The eFXnews team remark that in the opinion of Credit Agricole, investors pay too much attention to Fed's "dot plot", which could lead to a slight drop in USD.

Key quotes

"The USD was stronger across the board following the release of the nearly unchanged statement."

"The interesting part when looking at the price action is that the FOMC statement and broader message was largely unchanged from the July statement."

"The market, in turn, ignored the message from the statement, instead focusing on the uptick in the interest rate path."

"We suspect that the market continues to place too much emphasis on the dots as a policy tool, increasing the risks of a mild pullback in USD."

"Most of the indicators (positioning and technical) we track for short-term swings suggest risks of a USD correction are rising."

"DXY failed to break 84.93 on multiple occasions since 2010."

"Our FX Scorecard suggests that EUR and JPY have the highest upside correction riks but it remains cautious on AUD and GBP."

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