With the FOMC meeting fast approaching, Michael Hewson strikes a cautious tone over the likelihood that the Fed will signal higher rates and points to a possible euro rebound.
- The US dollar index has rallied by 25% in the last 7-8 months, so will the Fed want to indicate that higher rates are on the horizon?
- The S&P 500 and the FTSE 100 may see a resurgence if the FOMC statement is more dovish than expected, particularly is the word ‘patience’ remains
- The EUR/USD pair may be set for a short squeeze towards $1.10 if it can break above $1.0685
- EUR/GBP has seen a much greater rebound after dovish comments from Mark Carney but wage data may support sterling
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Video content by Michael Hewson of CMC Markets..