US: Difficult to see a structurally weak USD finding joy from Fed - ING

The FOMC minutes today may curb some of the hype over faster than expected Fed rate hikes – not least given the obvious divisions within the committee over the outlook for the US economy, according to Viraj Patel, Foreign Exchange Strategist at ING.

Key Quotes

“With the 2-year Treasury yield trading above 2.25%, one could easily argue that markets are all but pricing in the end of the Fed tightening cycle – assuming a 2.50-2.75% terminal rate and accounting for a small negative term premium at the short-end of the curve (-30bps). Difficult to see a structurally weak $ finding any joy from an already priced in Fed story.”