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Risks towards a stronger USD after FOMC — #SaxoStrats

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The US Federal Reserve is certain to hike interest rates, but what happens next, asks Saxo Bank’s head of FX John Hardy.


There is a greater chance of 25 basis points rise than no interest hike at all at the December 14 meeting, says Hardy, who explains that a signal may be needed to support USD towards year-end.

The Fed will likely play catch-up to economic direction during the next 1-2 years, he adds, so forward guidance from the meeting will probably be thin on the ground.