A key analyst at London-headquartered financial brokerage ActivTrades on February 23 reiterated his earlier forecast that interest rates in the United States are unlikely to rise any time soon and that this would make the dollar edge down.
“Any hints” to a Federal Reserve plan to raise interest rates in reacting to rising inflation could trigger panic sales of bonds and thereby boost demand for the dollar, Ricardo Evangelista said.
But this is a route Fed Chairman Jay Powell is likely to avoid, and so there is a good chance the dollar, having lost nearly 1 per cent over the past few days, will slide further, Evangelista argued.
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