USD Rally Driven by Fed Repricing May Be Overdone – ABN AMRO
ABN AMRO strategist says recent dollar strength driven by reassessment of Fed outlook, but warns repricing may have gone too far as bank still expects rate cuts.
The US Dollar rally that has dominated markets this week is largely the result of a reassessment of the Federal Reserve’s policy path, according to ABN AMRO. Markets are now pricing in rate hikes extending into 2026, fueling the greenback’s upward momentum.
However, strategist Georgette Boele argues that this repricing may have overshot the mark. ABN AMRO continues to expect the Fed to cut rates, suggesting the current dollar strength could be unsustainable.
Source: FXStreet Forex News